The euro lost ground against the dollar and yen in Asia on Monday amid concern over the French Socialist challenger who beat Nicolas Sarkozy in the first round of the nation's presidential election.
The euro inched down to $1.3193 and 107.33 yen in Tokyo afternoon trade from $1.3216 and 107.77 yen in New York late Friday.
The dollar fell to 81.34 yen from 81.52 yen.
The euro's fall came as Francois Hollande won 28.56 percent of the vote in the first round of France's presidential election on Sunday, beating incumbent Sarkozy's 27.07 percent, with attention now turning to a May 6 run-off vote.
"There is concern that the policies (Hollande) has been promoting could create friction between other major nations, including Germany," said Masafumi Yamamoto, chief forex strategist at Barclays Capital in Tokyo.
The euro may fall further if Hollande becomes France's new leader, he added.
Hollande has said he would move to renegotiate a fiscal pact agreed on by European leaders late last year, shifting the focus toward growth rather than enforcing austerity measures as a buffer against the eurozone debt crisis.
"But for euro-selling pressure to become persistent, we will have to wait and see what policies candidate Hollande actually spells out," Yamamoto told Dow Jones Newswires.
Investor jitters about the 17-nation eurozone's fiscal woes have eased, though, after the International Monetary Fund last week secured more than $430.0 billion for crisis intervention.
Trade between the greenback and yen would likely stay in a narrow 81.30-82.30 band ahead of this week's policy meetings by the US and Japanese central banks, said a senior trader at a major Japanese bank.
"It won't move much before those events," he said.
The policy-making Federal Open Market Committee is to start a two-day meeting on Tuesday while the Bank of Japan is to hold a policy meeting on Friday amid speculation they will usher in further monetary easing.
The dollar was mixed against other Asian currencies, falling to 1,138.65 South Korean won from 1,139.00 won on Friday, to Sg$1.2486 from Sg$1.2505, and to Tw$29.48 from Tw$29.50.
The dollar rose to 9,180.00 Indonesian rupiah from 9,167.00 rupiah and 30.93 Thai baht from 30.89 baht. It held steady at 42.61 Philippine pesos.
