The euro slipped against the dollar for a third straight session Friday as worries about the eurozone weighed heavier than the brewing fight in Washington over spending cuts and tax hikes.
At 2200 GMT, the euro was at $1.2709, down from $1.2748 late Thursday.
The yen headed higher against the euro, moving to 100.99 yen per euro from 101.27.
The dollar gained slightly on the yen, rising to 79.47 yen from 79.43.
Kathy Lien of BK Asset Management said markets were skittish about the dollar, as newly re-elected President Barack Obama laid out his challenge to opposition Republicans over how to fix the country's huge fiscal deficit, promising a new political battle in the coming weeks.
But the dollar still looked better in comparison to the euro, amid sagging growth in the eurozone.
The British pound fell to $1.5888 from $1.5982, while the dollar gained to 0.9482 Swiss francs, up from 0.9454 francs.