The euro weakened for an eighth day against the dollar as Greekpoliticians struggled to form a new government, fueling concern thenation will leave Europe's currency union.

The 17-nation currency extended its run of losses to the longestsince September 2008 as Spain's 10-year bond yields climbed backabove 6 percent. The pound fell for a second day against the dollaras a report showed U.K. retail sales fell the most in more than ayear. The dollar and yen rose against most of their majorcounterparts on increased demand for haven assets. Canada's dollardropped to a three-month low as oil declined for a sixth day.

“It's a function of the uncertainty in Greece and the creditstress in Spain,” said Boris Schlossberg, director of research atonline currency trader GFT Forex in New York. “It appears to beabsolutely clear that the Greeks are not going to do any moreausterity. If the Spanish yield goes to 7 percent, it's going to begetting into the red zone — a warning zone for the euro.”

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