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Euro Falls Below $1.30 as Italy Finance Costs Rise; Krone Slumps

The euro fell below $1.30 for the first time since January as signs of increased funding stress in Europe damped investor appetite for the shared currency.

The 17-nation euro declined to a 10-week low against the yen as Italian borrowing costs increased at a debt auction and Spanish banks’ borrowings from the European Central Bank climbed by the most in a year. Norway’s krone weakened after the Norges Bank cut interest rates for the first time since 2009. The pound was one of the the biggest gainer against the euro among the major currencies as investors sought protection from the crisis.