The euro weakened slightly against the dollar Tuesday, hitting a two-month low during the session as investors worried about Greece's debt crisis and its long-delayed rescue payment from its creditors.
The euro was traded at $1.2703 at 2200 GMT, down from $1.2709 at the same time Monday. Twelve hours earlier, it had hit $1.2662, its lowest level since September 7.
The pressured euro fell to 100.85 yen from 101.02 late Monday. The dollar also lost ground against the Japanese currency, buying 79.38 yen as compared with 79.49 a day earlier.
"Between eurozone debt jitters and the US fiscal cliff, market worries are likely to persist, meaning we maintain a bias for strength in the greenback and the yen, and weakness in most other foreign currencies," said Nick Bennenbroek at Wells Fargo Bank.
Traders were looking ahead to Wednesday's release of the Federal Reserve's minutes of the Federal Open Market Committee's October 23-24 policy meeting.
"Fears surrounding the US 'fiscal cliff' may drag on the dollar, but the FOMC minutes could prop up the reserve currency over the near term as the world's largest economy gets on a more sustainable path," said David Song at DailyFX.
The dollar slipped to 0.9472 Swiss francs from 0.9481 francs late Monday.
But the greenback firmed against the British pound, which bought $1.5872 compared with $1.5877 a day earlier.