The euro slumped to a five-month low point against the dollar earlier today. Analysts said worries that China will cool its booming economy hit demand for risk-sensitive currencies such as the euro.
The European single currency fell as low as $1.4044 - the lowest point since July 30. It later stood at 1.4093 in evening trade. The euro was also weak against sterling, trading at just under 87p this evening.
The euro was also troubled by worries about the euro zone economic outlook and budgetary crises in Greece and Portugal.
The European currency is seen as more vulnerable than the 'safe haven' dollar to any disappointment over the pace of the global economic recovery.
China's economy expanded by 8.7% in 2009 but inflation surged towards the end of the year, according to government data released earlier this morning which illustrated the risks of overheating.
