The euro was lower against the dollar Monday as investors took profits on gains by the European single currency over the past few weeks and after a better-than-expected U.S. jobs report on Friday.
The 16-nation euro bought $1.3926 in European morning trading, down from the $1.3963 late Friday in New York. The British pound bought $1.5868, compared with $1.5978 Friday.
The dollar had weakened against most currencies in the past few weeks on worries about the U.S. government's ability to fund its budget and a rise in bond yields, which could prevent an economic recovery. Analysts believe investors have started booking profits on the euro's gains.
That was evident as the dollar gained Friday, when data showed U.S. employers cut only 345,000 jobs in May, the smallest figure since September and half of the average monthly cuts for the last six months.
The euro was also weakened somewhat by suggestions that Europe's recession will be deep and protracted.
Germany's central bank, the Bundesbank, said Friday the euro zone's largest economy would shrink by 6.2 percent, more than the 6 percent the government had forecast earlier. The Bundesbank also predicted the economy would be stagnant in 2010.
In other trading, the dollar bought 98.54 Japanese yen, up from 98.36 yen late Friday in New York.
