The euro was seen weak against the dollar as a Greek debt auction highlighted persistent doubts about the country’s credit risk and investors worried about tepid economic prospects in the euro zone. On the other hand, the dollar drifted lower against a basket of currencies as investors grew nervous about Federal Reserve Chairman Ben Bernanke’s testimony Wednesday on the economic outlook before the Joint Economic Committee.
Vassili Serebriakov, senior currency strategist at Wells Fargo in New York said: "Even though we had a pretty good Greek auction today, people are still finding few reasons to buy the euro in the medium term. Growth prospects are still quite subdued in the euro zone compared to that of the US That’s what really preventing a strong bounce in the euro."
The euro traded at $1.3587. The euro also slipped 0.1 percent against the yen to 126.60 yen , and fell 0.4 percent against the Swiss franc to 1.4337. Against the yen, the dollar was down 0.1 percent at 93.15.