The Euro continues to decline on rising contagion fears and growing worries that Greece will be compelled to exit the Eurozone.

Though the Euro clawed higher, it remains vulnerable as fears of a Greek exit grow on the backs of news that some Greek banks are experiencing a funding crisis.

In Asian trading, the Euro wallowed near to a 4-month low versus the U.S. Dollar, but traders expect a continued downtrend following the stalemate in Greek politics which will usher in a new election, certainly, but moreover, the increasing risk of a Greek exit from the Eurozone.

Traders are growing increasingly worried that the political impasse staged by the ruling parties in Greece will ultimately lead to the country’s pull out from the Eurozone which is pushing the common currency lower in Asian trading.

Greece’s political leaders failed again to find some common ground and form a coalition government to move the country forward, with the likely outcome first another election within the next few weeks and later a possible withdrawal from the Eurozone.

The Euro struck a 3½ month low against the U.S. Dollar in Asian trade as news of $2 billion over the past six weeks in trading losses by JP Morgan caused some market jitters and risk aversion.