Euro at four month low

Worries about a Greek exit spread outside the Eurozone.

Photograph: Getty Images

The euro has fallen to $1.27, its lowest point in four months against the dollar as speculation surrounding a Greek exit mounted.

Greek elections will be held again next month after a week of negotiations in which no progress was made. Leaders of France and Germany agreed Greece should remain in the eurozone while taking measures to revive economic growth.

This did not stall uncertainty in the markets however, which has now spread outside the eurozone.

 Asian stocks were pushed lower, with the FTSE Asia-Pacific index down 2.6 per cent. China and Australia were also affected.

Oil prices also fell,  US light crude dropped $1.60 to $92.38, while the London Brent fell by $1.25 a barrel to $111.