UBS: Asset Managers Sold Euro At Fastest Pace Since Nov

Asset manager clients of UBS AG (UBS) last week sold euros at the fastest pace since November 2011, the bank said Monday, illustrating a "torrid" week for the single currency.

Overall euro flows for the period were the second-largest of the year so far, the Swiss bank, the fourth-largest currencies-dealer by market share, said in a note to clients.

"The biggest damage to the currency was done not [against the dollar] but against the [Swiss franc]," the bank added, with total sales in the euro against the franc the third-strongest on record, with particularly heavy selling from hedge funds.

There is speculation a break of the Swiss National Bank's limit of CHF1.20 to the euro is possible, it added.

"A Greek exit from the euro zone would prove a stern test for the SNB," it said.

The euro fell by over 2% against the dollar last week, reaching a four-month low of $1.2642 Friday amid heightened concerns that Greece, beset by concern it may not meet conditions for bailout financing keeping the country afloat, may be forced from the 17-nation euro zone.

The euro traded now at $1.2745.

- By Katie Martin, Dow Jones Newswires; 44 20 7842 9346; [e-mail]