The euro fell to its weakest level against the dollar since July2010 on speculation a summit of European Union leaders will provideno new measures to stem the sovereign-debt crisis.

The shared currency extended losses after dropping below 100 yenfor the first time since February and weakening to less than $1.26,price levels where traders who follow technical analysis said sellorders were clustered. The yen climbed at least 0.7 percent versusall its major peers after the Bank of Japan left its asset-purchasefund unchanged.

“Markets are becoming a bit more pessimistic that anythingmaterial will come out of the meetings this evening, and as aconsequence the short-covering rally in the euro was unimpressive,”said Robert Sinche, global head of foreign-exchange strategy at RBSSecurities Inc. in Stamford Connecticut. “Risk appetite and theeuro hitting the lows of the year are emboldening investors.” Ashort is a bet an asset will decline.

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