Euro slides on currency volatility warnings

The euro continued its descent against the dollar today, trading at $1.2507 in early deals as markets continue to react to a series of comments from senior European Central Bank officials and political leaders.

The comments warned against the negative impact of currency volatility on exports and the euro zone's economic recovery.

After rising strongly in the opening days of 2004 and hitting an all-time high of $1.2898 on Monday, the euro appears to be weakening slightly head of next month's G7 meeting, with the subject of the dollar's decline expected to be a major topic for discussion.