The euro hit an 8 1/2-year low versus the yen on Tuesday as the single currency struggled broadly due to investor jitters about liquidity issues before a euro zone refinancing programme expires this week.

The euro EURJPY=R fell more than 1.5 percent on the day to 107.80 yen according to trading platform EBS, breaking under 108 yen for the first time since late 2001.

Market participants said the single currency's fall versus the yen accelerated after the euro fell against the dollar, sweeping through options barriers suspected around $1.2200.

This helped to push the euro EUR= down to a two-week low around $1.2180.

(Reporting by Tamawa Desai and Naomi Tajitsu)