The euro slumped to a session low against the safe-haven dollar and yen on Wednesday as investors tempered expectations of a decisive solution to the European debt crisis ahead of an EU summit announcement.

European Union governments will signal readiness to back banks with guarantees to avert a credit freeze but give no overall figure for recapitalizing lenders, according to a draft statement from leaders meeting in Brussels on Wednesday.

The euro fell to a low of $1.3855, according to Reuters data. It was last trading down 0.3 percent at $1.3864.

Against the yen the euro dropped to a trough of 105.21 and last traded at 105.28, down 0.5 percent on the day.

The dollar rose to a session high against the safe-haven Swiss franc at 0.8823 franc and last traded at 0.8818 franc, up 0.4 percent on the day.

Overall risk sentiment dropped, with U.S. stocks trimming gains.