The safe-haven currencies benefited amid heightened risk aversion, with the dollar and yen advancing against the majors. US Treasury Secretary Geithner provided additional details on the Obama administration's financial bail-out plan - prompting a sharp sell-off in stocks. The Dow Jones and S&P 500 were both lower by over 4% and the Nasdaq sliding by nearly 3.5% in the New York afternoon.

In Treasury Secretary Geithner's speech, few additional details regarding specifics for the plan were revealed. Geithner described buying up to $1 trillion in banks' toxic assets and up to $1 trillion in purchases of consumer debt - in an effort to free up the credit markets. Geithner fell short of providing any key details on a comprehensive bail-out program, prompting markets to sell-off sharply amid growing uncertainty over the prospects for the government to successfully.

Euro Pressured on Russian Debt Restructure rumor

The euro whipsawed around the 1.30-level against the greenback in the Tuesday session on a combination of news about the US financial rescue plan and speculation over potential debt restructuring by Russia. The heightened risk aversion prompted the euro to slide to 1.2812 versus the dollar and 116.68 against the yen.

The single currency's slide was triggered by a report overnight in a Japanese newspaper that suggested Russian banks were mulling over plans to restructure nearly $400 billion in loans - triggering heightened anxiety over European banks' exposure to Russia. Although the report was subsequently denied by Russian officials, the euro struggled to regain its footing throughout the session.

EURUSD remains mired near the 1.29-level, with support seen at 1.2880, followed by 1.2820 and 1.28. Further selling pressure will be tempered at 1.2770, backed by 1.2740 and 1.27. Gains will target interim resistance at 1.2930, followed by 1.2970 and 1.30. Subsequent ceilings are seen at 1.3040, followed by 1.3070 and 1.31.