Euro Extends Slide

The euro continued to be weaker against the other major currencies in the Asian session on Tuesday, as the ongoing concerns over Greece and its credit woes continued to impact the markets.

Greece's government on Monday ruled out imposing controls over capital flows over the upcoming long weekend, after an opposition lawmaker suggested the move if the country fails to strike a deal with its creditors soon.

Greece, which was the first country to be bailed out by the EU and the IMF in 2010, is still struggling and needs to secure more funds to meet its payments.

In a "Project Syndicate" website, Greek finance minister Yanis Varoufakis blamed the creditors' insistence on greater austerity that would paralyze economic recovery .

"Our creditors' insistence on greater austerity is subtle yet steadfast," Varoufakis said. "Our government cannot -- and will not -- accept a cure that has proven itself over five long years to be worse than the disease," he added.

The political upset in Spain also dampened sentiment. Spanish voters punished the governing Popular Party in regional and municipal elections, by giving weighty support to upstart leftist and center-right parties.

In the Poland's presidential election, the exit polls showed victory for nationalist opposition candidate Andrzej Duda, defeating Bronislaw Komorowski. The presidential runoff may unseat one of Europe's most economically successful governments.

Official results of the run off are expected later on Monday, exit polls showed that Conservative Duda has won 53 percent of the votes, while President Komorowski could win only 47 percent.

Monday, the euro fell 0.12 percent against the pound, 0.29 percent against the U.S. dollar, 0.25 percent against the yen and 0.11 percent against the Swiss franc.

In the Asian trading today, the euro fell to nearly a 4-week low of 133.09 against the yen, from yesterday's closing value of 133.42. The euro may test support near the 128.50 region.

Against the U.S. and the New Zealand dollars, the euro dropped to a 4-week low of 1.0930 and nearly a 3-week low of 1.4957 from yesterday's closing quotes of 1.0976 and 1.5005, respectively. If the euro extends its downtrend, it is likely to find support around 1.06 against the greenback and 1.44 against the kiwi.

The euro edged down to 0.7075 against the pound and 1.0354 against the Swiss franc, from yesterday's closing quotes of 0.7094 and 1.0370, respectively. On the downside, 0.69 against the pound and 1.02 against the franc are seen as the next support level for the euro.

Against the Australia and the Canadian dollars, the euro slipped to near 2-week lows of 1.3978 and 1.3471 from yesterday's closing quotes of 1.4021 and 1.3513, respectively. The euro is likely to find support around 1.36 against the aussie and 1.31 against the loonie.

Looking ahead, U.S. durable goods orders for April, U.S. S&P Case-Shiller's house price index for March, the Conference Board's U.S. consumer confidence index for May and new home sales data for April are due to be released in the New York session.

At 12:30 pm ET, Federal Reserve Governor Stanley Fischer is expected to speak on "The Federal Reserve and the Global Economy" before a conference in honor of Professor Haim Ben-Shaharat at the Tel Aviv University in Israel.