Euro Slides After Fed's Yellen Express Concerns Over Global Growth Outlook

The euro slipped against its major rivals in European deals on Wednesday, as the Fed Chairwoman Janet Yellen warned that financial conditions "have become less supportive to growth," which could weigh on the outlook for economic activity, if it persists.

In testimony prepared for delivery to the House Financial Services, Federal Reserve Chair Janet Yellen admitted that "downside risks" from exposure to the slowing Chinese economy could hurt the U.S.

"Should any of these downside risks materialize, foreign activity and demand for U.S. exports could weaken and financial market conditions could tighten further," she said.

The European currency slipped to 1.1222 against the greenback, compared to 1.1292 hit late New York Tuesday. If the euro-greenback pair extends slide, it may find support around the 1.10 zone.

Pulling away from an early high of 130.11 against the Japanese yen, the euro edged down to 128.94. The next possible downside target for the euro-yen pair may be found around the 127.00 level.

The single currency depreciated to 1.0954 against the Swiss franc, its weakest since January 25, and held steady thereafter. Continuation of the euro's downtrend may take it to a support around the 1.08 area.

The common currency fell to a 2-day low of 0.7729 against the pound, coming off from a high of 0.7819 hit at 8:30 pm ET. Further weakness may take the euro to a support around the 0.76 mark.