Early trade: Euro falls from two-month high

The euro stepped back after touching a two-month high versus a broadly weaker dollar on Friday, as investors bet that gains supported by rising European money market rates were overdone. In afternoon trade in New York, the euro was slightly lower at $1.2920, after earlier rising to a two-month high of $1.3008 on electronic trading platform EBS.
The break above $1.3000 will bring resistance at $1.3125 into play, the 38.2 percent retracement of the euro's fall from November to June. The dollar was down 0.9 percent at 86.67 yen after falling as low as 86.27 yen on EBS.