The euro fell to its weakest level against the dollar since July 2010 on speculation a summit of European Union leaders will provide no new measures to stem the sovereign-debt crisis.

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

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