The euro suffered its biggest daily decline against the dollar in nearly a year on Wednesday, weakened by talk of a euro zone interest rate cut, while signs of economic malaise in Britain and Canada added to the U.S. currency's appeal.
The yen also slipped against the dollar, with officials at a weekend Group of 20 meeting not expected to scold Japan for a monetary policy that has led to a sharp slide in the currency. A bigger focus for currency traders on Wednesday was monetary policy in Europe after Jens Weidmann, a member of the European Central Bank's governing council, was quoted by the Wall Street Journal saying the central bank could cut rates further if conditions in the euro zone worsen.
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The euro fell 1.1 percent to $1.3026 after hitting a seven-week high overnight and was on track for its largest one-day slide since June. It fell 0.6 percent to 127.73 yen, moving further away from a three-year high above 131. Support for the euro lies around $1.3020, traders said, while a break could spark a decline toward $1.30 and $1.29.