The euro fell broadly this morning as the cost of insuring against a Greek default rose, underscoring persistent concerns about Greece's ability to service its debt.

The euro was on track for its biggest one-day fall in three weeks against the greenback as the Greek/German government bond yield spread also widened to near record levels hit before eurozone members agreed a standby aid package for Greece. Ministers agreed last Sunday to make available 30 billion euros in loans with a further 15 billion coming from the International Monetary Fund. But, uncertainty remains over how the financial assistance would be implemented and the markets have acted accordingly. "Markets are not pacified by the bailout package agreed upon last weekend and still consider Greece to be a high default risk," said Boris Schlossberg, director of currency research at GFT in New York.  Five-year Greek credit default swap prices rose to 455 basis points, exceeding a record closing high of 444 basis points hit a week ago.

The euro fell nearly a full percent to a session low of $1.3520 earlier, its lowest in about a week, according to Reuters’ data. It last traded 0.7 percent lower at $1.3561, more than a US cent below the day's high of $1.3666. At current prices, it was on track for the biggest daily decline since March 24. Some in the market said selling large international groups selling was helping push the euro lower against the dollar, and that a break through stop-loss orders around $1.3575 and below had exacerbated losses. Traders said key support for euro/dollar is at $1.35, a break of which could see the pair fall toward $1.33 and retest the 2010 low around $1.3265 set in late March.