NEW YORK: The euro's losses versus the US dollar accelerated in late afternoon New York trade on Tuesday as investors positioned ahead of a European Central Bank meeting later in the week.

The euro fell to $1.2968, its lowest since June 3, with traders wary before a ECB meeting on Thursday. The euro last traded at $1.2978, down 0.7 percent on the day, according to Reuters data.

Analysts expect the ECB to keep interest rates steady and some, such as strategists from HSBC Bank, said the central bank is likely to remain cautious about reacting to recent volatility in financial markets through monetary policy.