The EUR extended losses against most of its major currency on Wednesday and hit session lows, as bearish investor sentiment over Greece's public finances weighed on the single currency. After yesterday, the 16 nation currency fell sharply against the USD, pushing the oft-traded currency pair to 1.3600. The EUR also saw bearishness against the GBP and closed at 0.8675.
The EUR fell even after European finance ministers on Tuesday gave Greece a one-month reprieve, until March 16, to show its deficit reduction plan was being rolled out effectively. They set the same deadline for them to decide what should happen next.
The EUR has fallen almost 5% against the dollar since the start of the year on concerns about Greece's fiscal health and that of other euro zone peripheral countries. Currency speculators raised net EUR short positions to a record high last week.