- The euro fell to session lows against the dollar and the yen on Thursday, as fears over Portugal’s largest bank and a slew of weak manufacturing data across the euro zone weighed on the single currency.

EUR/USD was down 0.28% to session lows of 1.3602.

The pair was likely to find support at 1.3585, Wednesday’s low and resistance at 1.3650, the session high.

Portugal’s stock exchange, the PSI 20 fell sharply on Thursday, amid fears over the health of the country’s largest bank, Banco Espirito Santo (LISBON:BES). Shares in the bank were suspended on Thursday after tumbling 17%.

Bank shares across the euro zone came under pressure amid renewed concerns over the stability of the financial sector.

Weak reports on manufacturing and inflation in the euro zone also hit investor sentiment.

Italy''s industrial output unexpectedly fell 1.2% in May, data on Thursday showed. Meanwhile, French industrial production plunged 1.7% in May and inflation rose by just 0.6%, the lowest level since November 2009.

The euro fell to one-month lows against the yen, with EUR/JPY down 0.55% to 137.87.

The single currency was little changed against the pound, with EUR/GBP at 0.7954, holding above the almost two year lows of 0.7914 set on Monday.

The pound showed little reaction after the Bank of England left rates on hold at 0.5% on Thursday and kept the size of its asset purchase program unchanged at £375 billion.

Earlier in the day, official data showed that the U.K. trade deficit unexpectedly widened to £9.2 billion in May. Exports rose by 0.6% to £24.1 billion, while imports rose by a faster 1.7% to £33.3 billion.

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