The euro sagged to a 13-month low against the dollar amid worries about the impact of financial market turmoil in Turkey.
The 19-country currency fell 0.7 percent to trade at $1.1450 in morning trading in Europe. The dollar, which traders buy in times of financial concern, was up against most other currencies.
The euro’s fall comes as investors try to come to grips with how big a threat the troubles in Turkey might pose for the currency union.
Turkey’s currency sagged to an all-time low Friday amid doubts about the country’s economic management and souring ties with the United States.
The Financial Times added to concerns with a report that the European Central Bank was worried about possible losses at eurozone banks operating in Turkey. European officials also rely on a deal with Turkey to restrain migrant flows in return for aid.
The Turkish currency has plunged to an all-time low amid concerns over the president’s economies policies persisted and as a dispute with the United States showed no sign of subsiding.
The lira hit a record low of 6.24 per dollar on Friday, before recovering to 5.94, down 7 percent on the day. The currency has fallen 66 percent since the start of the year.
High level meetings in Washington between U.S. and Turkish officials over a detained American pastor ended this week without an apparent resolution. Washington imposed financial sanctions on two Turkish ministers and warned of additional measures.
President Recep Tayyip Erdogan on Thursday portrayed the currency drop as a “campaign” to harm Turkey.
He said: “If they have their dollar, we have the people, we have Allah.”