The euro skidded toward nine-month lows against the dollar on Tuesday as the market digested the mounting possibility of a European Central Bank interest rate cut, dealing another blow to the reeling single currency. ECB monetary sources told Reuters that the central bank was considering a rate cut depending on how upcoming data play out. Coming on the heels of European Union leaders' failure to adopt a seven-year budget and the rejection of the EU constitution by France and the Netherlands, the single currency edged back to nine-month lows hit last week near $1.2000. Interest rates have become the dominant theme in currencies this year, helping the dollar stage an unexpected rally and benefiting other currencies where rates are high or on the rise. Next week the Federal Reserve is widely seen raising rates by another quarter percentage point to 3.25 percent. Richmond Fed President Jeffrey Lacker said on Monday that a moderate pace of continued tightening was a sensible outlook at this point.