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Investors were spooked by Chinese export data which showed a sharp drop of more than 25 per cent last month, reports the Associated Press.
Yesterday (March 10th), the single European currency had gained some traction after Axel Weber, president of Bundesbank and governing council member of the European Central Bank, said interest rates in the eurozone should be cut to no more than one per cent.
Mr Weber commented: "The world economy is in a significant downturn.
"As a result of the decline in export demand, the German economy will be affected especially hard."
However, today's developments demonstrated the dependence of many export-orientated economies, such as China and Japan, on the US.
This week, Japan posted its first trade deficit for 13 years.
