Fallout from France's "No" to the EU constitution swept financial markets for a second day today to drag the euro to seven-month lows against the dollar and depress stocks.
Bonds fluctuated, with demand eventually building after poor economic data.
The euro's initially muted reaction to the French vote yesterday turned into a sharp fall. The single currency was down more than two-thirds of a per cent at $1.2385.
France voted 55-45 per cent to reject the constitution on Sunday. The Netherlands is expected to follow suit tomorrow.
Central European currencies and the Turkish lira showed some resilience following the French vote, however, with analysts saying the "No" vote had been priced in well in advance.
Some analysts also expected the focus on the constitution would dissipate as the week continued, with US jobs data on Friday taking its place as the main factor for investors.