Early trade in New York: Euro sinks versus Swiss franc

Fear that the eurozone's debt crisis could spill over into Italy drove the euro to a record low against the Swiss franc on Monday as policy-makers tried to come up with a plan for a second round of Greek aid. The currency also tumbled to a four-month low against the yen and a six-week trough against the dollar. A Financial Times report that some European leaders would consider letting Athens default on some of its bonds added to market anxiety. The euro slid to $1.3984, its lowest in six weeks.
It was last down 1.6 percent at $1.4035, its worst one-day slide since June 15. Commerzbank said near-term targets include $1.3968, the May 23rd low, and $1.3907, the 200-day moving average. The European Union will release results of new bank stress tests on Friday. The euro also hit a four-month low of 112.37 yen and a record low of 1.1672 Swiss francs.