Early trade in New York: Euro slumps to fresh four-month low

The euro slid to a fresh four-month low against the dollar on Tuesday after a spokesman for the Greek president said the country will hold new elections after political leaders failed to reach agreement on a coalition government. In a sign of a swift rise in risk aversion, German government bonds rose sharply and Italian 10-year yields hit 6 percent on the news.
The dollar, bolstered by safe-haven flows, also gained against the yen as investors compared US data releases to those from elsewhere in the world and saw the world's largest economy on track to recovery, albeit at a slow pace. The euro was last down 0.5 percent at $1.2765 with the session trough at $1.2752, the lowest since January 18.