Euro extends losses, drops below $1.29 vs dollar

NEW YORK, March 25 Mon Mar 25, 2013 11:00am EDT

NEW YORK, March 25 (Reuters) - The euro hit a session low versus the U.S. dollar and Japanese yen on Monday as comments made by the head of the Eurogroup of euro zone finance ministers spurred broad risk aversion.

Dutch finance minister Jeroen Dijsselbloem, who heads the Eurogroup, told Reuters and the Financial Times that the rescue program agreed for Cyprus represents a new template for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

The euro fell as low as $1.2865 and last traded at $1.2874, down 0.8 percent on the day.

The euro initially rose above the $1.30 level in the overnight session after Cyprus struck a deal with international lenders.

The euro fell as low as 121.69 yen and last traded at 121.74, down 0.8 percent on the day, according to Reuters data.

Global stocks turned lower, U.S. Treasuries turned flat and German bund futures hit a session high after the news.

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