The euro was down against the dollar as investors locked in profits on recent euro gains ahead of European bank stress test results. Disappointing quarterly results from Goldman Sachs Group Inc and some other companies rattled the US stock markets and thus took the euro to end up on a low note.
Camilla Sutton, senior FX strategist at Scotia Capital in Toronto said: "We’ve had three recent attempts above $1.30, and the euro’s come back each time. Markets are looking for a catalyst to take it back up or push it down, and as long as the stress tests come out as expected with no big surprises, we could make a temporary new high above $1.30."
Lutz Karpowitz, currency strategist at Commerzbank in Frankfurt said: "If all of the banks passed, the market would say the tests were unrealistic."
The euro traded at $1.2894, down 0.4 percent. Against the yen, the dollar rose 0.7 percent to 87.36 yen.