The euro weakened to a more than two-year low against thedollar, falling below $1.21, as concern mounted that Europeanleaders are failing to gain control of the region's debtcrisis.

The 17-nation currency dropped to less than its lifetime averageversus the dollar, and slid to an 11-year low against the yen.Japan's currency strengthened against all 16 of its majorcounterparts as investors sought safer assets. Six Spanish regionsmay ask for aid from the central government, El Pais reported,propelling the nation's 10-year bond yield to a euro-era high. TheSwiss franc weakened through 99 centimes per dollar for the firsttime since December 2010.

“I see euro parity against the dollar,” said Neil Jones, head ofEuropean hedge-fund sales at Mizuho Corporate Bank Ltd. in London.“Spanish yields surging to records indicate a lack of confidence infinding a solution to the crisis, which is weighing on thecurrency.”