U.S. dollar rose above the key level of 1.30 to a three-month high against the euro on Wednesday, extending the current gaining streak to the eighth day, as concerns over European debt outlook made investors flee to safe- haven assets.

Investors continued to dump the euro and turned to the U.S. dollar and U.S. Treasurys, rattled by political uncertainties in Greece. Greek leftist leader Alexis Tsipras was expected to meet leaders of the country's socialist Pasok party and the conservative New Democracy party on forming a coalition government.

Investors were nervous the talks would fail, while some traders were saying any hint a new government could be formed would produce a bounce in markets.

Adding to the pressures, Spanish benchmark bond yields surged over 6 percent on Wednesday, suggesting widespread concern about the European situation.

In late Tuesday trading, the euro declined to 1.2945 dollars from 1.3030 dollars. The dollar gained to 1.0012 Canadian dollars from 0.9986, and rose to 0.9277 Swiss francs from 0.9219. The British pound fell to 1.6142 dollars from 1.6165.

The dollar bought 79.68 Japanese yen, lower than 79.79 in the previous session.