The euro has fallen to its lowest level against the dollar for 10 months as European Union leaders disagree on how best to deal with Greece's debt crisis.

A leading rating agency's move to cut Portugal's credit rating on Wednesday has also forced the euro lower.

Against the dollar, the euro fell to $1.333, its lowest level since early May last year. Against the pound, it fell by 0.3% to 89.338 pence.

EU leaders are meeting in Brussels, but Greece is not officially on the agenda.

However, the European Commission president Jose Manuel Barroso has repeated calls ahead of the summit for leaders to agree an aid package for Greece.

Germany is unconvinced that Greece needs help. Greece itself has not asked for any direct financial assistance.

Greece has one of the highest budget deficits in Europe and there are widespread concerns about its ability to bring its debt down to a manageable level.

Similar concerns exist about Portugal, prompting Fitch ratings agency to downgrade the country's sovereign debt rating from AA to AA-.

SOURCE: BBC NEWS