Euro extended its fall after having dropped sharply on Monday on a ratings downgrade of Spain by rating agency Standard & Poor's and grim economic forecasts from the European Commission. "The global economy is deteriorating much faster than anticipated. As a result, losses in the banking sector are expanding and we cannot see a bottom to it," said a trader at a Japanese bank."The market is well aware of policy-makers' determination to avert more collapses of financial firms, but a guaranteed rescue is impossible," the trader said.
