The euro fell below $1.30 for the first time since January as Italian borrowing costs increased at a debt auction and Spanish banks' borrowings from the European Central Bank climbed by the most in a year.

The 17-nation euro declined to a 10-week low against the yen as European stocks declined, damping demand for assets denominated in the euro region's currency. Norway's krone weakened after the Norges Bank cut interest rates for the first time since 2009. The pound was the biggest gainer against the euro among the major currencies as investors sought protection from Europe's sovereign-debt crisis.

"It looks like the euro is going to remain under periodic bouts of pressure that could be quite acute," said Ray Attrill, a senior currency strategist at BNP Paribas SA in New York. "The European Union summit agreement was seen as the bare minimum."