Euro Falls to 3-Week Low on Concern Greek Crisis Is Worsening

The euro fell to a three-week low against the dollar and slid versus the yen as speculation the Greek debt crisis is deteriorating damped demand for the region’s assets.

Europe’s shared currency fell for a second day after Dutch newspaper Het Financieele Dagblad cited European Central Bank Governing Council member Nout Wellink as saying the region’s emergency fund should be doubled. was also dragged lower on concern a reshuffling of Greek Prime Minister George Papandreou’s cabinet will lead to a renegotiation of aid terms. The yen pared gains against the dollar after reports showed U.S. initial claims for unemployment fell more than forecast and housing starts increased in May.