Early trade in New York: euro sinks below $1.30

The euro sank below $1.30 on Wednesday, hitting an 11-month low against the dollar as worries about a lack of a solution to the eurozone sovereign debt crisis kept a dim outlook on the single currency into the year-end. Although Germany and Italy managed to find enough buyers for their debt at auctions on Wednesday, investors focused on the high yields that Italy was forced to pay - a level seen as unsustainable.
At 6.47 percent, the yield on Italy's five-year bond was the highest since the euro was launched in 1999. The euro fell to $1.2944 on Reuters data, its weakest level since January 11, as investors pushed the single currency through options-related barriers at $1.3005, $1.3000, and $1.2990. It last traded at $1.2973, down 0.5 percent. Key downside target lies around $1.2863, the 2011 low. The euro also slipped 0.4 percent against the yen, to 101.28 yen, after falling as low as 101.07, the lowest level since early October.