The euro plunged to a fresh seven-month low against the dollar on Thursday amid growing concerns over the fiscal health of debt-laden euro zone countries.
Worries over debt levels in Spain and Portugal have increased as investors speculate the two countries may face budget deficit and debt problems like those of Greece. Such concerns helped lift the relatively safer haven U.S. dollar and yen.
Euro zone fiscal problems increase chances the U.S. economy will recover more quickly and the U.S. central bank will lift interest rates before the European Central Bank. Such a move would make dollar-based assets more attractive.
Investors are now largely focused on the key U.S. non-farm payrolls numbers