The U.S. dollar gained against major currencies on Monday, while the euro fell to its lowest level in two weeks amid renewed concerns that European leaders aren't doing enough to contain the region's sovereign-debt crisis.
The euro fell as low as $1.3177 before recovering back above the $1.32 level, compared with $1.3370 in late U.S. trading on Friday. The shared currency hasn't closed under $1.33 since Nov. 25.
Further weighing on investor confidence about the euro zone, Moody's Investors Service said on Monday that it still intends to revisit the ratings of all European Union countries during the first quarter of 2012 given "the continued absence of decisive policy measures." That followed Standard & Poor's warning last week that it may downgrade the ratings of 15 euro-zone nations, including France and Germany, due to the lack of a solution to the debt crisis.
The question remains whether the European Central Bank will do more in the short term while governments work on getting their fiscal houses in order.
Euro-zone leaders said Friday that they would forge closer fiscal ties via an intergovernmental accord. However, doubts emerged Monday about whether Friday's agreement does much to address the short-term challenges posed by the debt crisis.
"While fiscal union is laudable and it is definitely a positive step for future euro-zone debt dynamics, what we're missing steps to deal with today's [sizable] debt problem," said Kathleen Brooks, research director at Forex.com."The politicians seem to be focused on preventing a future debt crisis — what about dealing with the one on the doorstep first?"
Among other major currencies, the British pound slipped to $1.5623, compared with $1.5659 in late trading Friday.
The U.S. dollar gained against the Japanese yen, which is also regarded as a haven. The dollar bought ¥77.83, compared with ¥77.50 Friday.
The U.S. Dollar Index, which tracks the performance of the greenback against a basket of other major currencies, rose to 79.363 from 78.622 in late U.S. trading on Friday
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