Fears of sovereign downgrades over the eurozone debt crisis pressured the euro Monday, while news of the death of North Korean leader Kim Jong-il fed fears of regional instability in Asia.
The euro slipped about 0.1 percent to $1.3024 versus the dollar, edging back towards an 11-month low hit last week of $1.2945 on fears that ratings downgrades for several European countries could derail progress towards resolving the euro zone's debt crisis.
"The main focus for markets remains the developments in Europe and the subsequent implications for global growth," said Lee Hardman, currency strategist at BTM-UFJ.
Stocks were mixed, with MSCI's world equity index <.MIWD00000PUS> down around 0.3 percent while the key FTSEurofirst 300 <.FTEU3> index recovered from early losses to climb 0.6 percent from Friday's closing level.
The dollar index <.DXY>, which tracks the greenback against a basket of currencies, was flat for the day at 80.26, paring gains made in the Asian session.
Eurogroup finance ministers will discuss progress in pursuing fiscal consolidation later on Monday, after a key summit earlier this month failed to produce a convincing plan to solve the region's funding problems, prompting rating agencies to respond negatively.
