Euro tumbles to 1.2737 dollars

The euro dived to the lowest level for more than one year today as deadly protests in debt-plagued Greece cast a shadow over the future of the eurozone and the single currency, dealers said.

At 9 a.m., the shared European unit hit 1.2737 dollars -- a level last seen on March 12, 2009.

"Due to the violent escalation of the protests in Greece the euro is getting under further pressure," said Commerzbank analyst Ulrich Leuchtmann.

Three people were killed in Athens on Wednesday in a fire started by petrol bombs thrown into a bank building by protestors.

Demonstrators took to the streets in Athens after the nation agreed to severe austerity measures to win an EU-IMF debt rescue package totalling 110 billion euros (145 billion dollars).

"Only a few days after the aid programme was completed it is becoming increasingly clear that the implementation of the savings measures does not depend on the will of the government alone," added Leuchtmann.

"That demonstrates the weak side of the bailout solution: so far no plans have been made should the (fiscal) consolidation in Greece fail."

The euro has been slammed in recent days and weeks as the Greek debt and deficit crisis showed signs of spreading across the eurozone -- particularly in other fiscally-challenged nations like Portugal and Spain.