The euro fell on Monday, still suffering from data on Friday showing Europe's recession was worse than earlier thought, while the dollar fell against other currencies seen as higher-risk. The yen fell broadly after Japan's top finance ministry bureaucrat Kazuyuki Sugimoto said he was watching foreign exchange market moves carefully and that he hoped they would not have a negative effect on the economy. [ID:nTKF104381]. The news served as a reminder to the market of the risk of Japanese authorities looking to intervene to weaken the Japanese currency if it strengthens too sharply, although any action beyond verbal intervention is viewed as unlikely, analysts said. The euro stayed under pressure against the dollar after figures on Friday showed a bigger-than-expected contraction in the euro zone economy. However, a recovery in European share prices from earlier falls .FTEU3, rises in U.S. stock futures SPc1DJc1 and gains in oil prices CLc1 pushed the dollar lower against some currencies seen as higher risk such as sterling and the Australian dollar. "The most interesting move has been in the yen, which has been coincident with gains in commodities and equities," Barclays Capital currency strategist Adarsh Sinha said. "Japan expressing concerns about yen appreciation is also behind the yen's falls," he added. He said the euro had taken some support from European Central Bank Governing Council member Axel Weber reiterating that interest rates at 1 percent were appropriate unless the situation got noticeably worse. [ID:nLI369963] At 1026 GMT, the euro fell 0.2 percent against the dollar to $1.3460 . Against the yen, it gained 0.4 percent to 128.85 yen , having hit a session high around 129.22 yen, while the dollar rose 0.6 percent to 95.70 yen , a shade below a session high around 95.91 yen.

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