LONDON, Nov 11: The euro plunged against the dollar on Tuesday despite gloomy US economic data as investors sought refuge in the US unit amid worsening fears for the flagging world economy, traders said.

In late trading in London, the euro fell to $1.2555 from $1.2748 late in New York on Monday, after plunging almost three cents earlier to as low as $1.2518.

“The dollar still remains as a save haven,” Commerzbank analysts said in a note.

The euro had earlier been buoyed by a key survey that revealed an improvement in business confidence in Germany, the biggest economy in Europe, but that soon faded.

The euro also fell to 122.82 yen from 124.92 yen on Monday.

The dollar eased to 97.75 yen from 97.99 yen.

The dollar had fallen against the euro on Monday as the foreign exchange market digested a massive stimulus package for China’s economy.

“The impact on the financial markets of China’s stimulus plan proved to be short-lived,” Commerzbank analysts said.

“Instead, concerns about the impact of the financial crisis on US companies like Goldman Sachs and General Motors weighed on investor sentiment.”

On the London Bullion Market, the price of gold fell to $733.75 an ounce from $753 late on Monday.—AFP