NEW YORK: The euro fell again against major currencies on Monday as Germany reiterated its insistence on austerity and reform in trying to revive the eurozone economy.

The euro sank below $1.32 against the dollar, falling to its lowest level since early September 2013. As recently as May it was above $1.39.

The euro also dropped against the British pound and Japanese yen, as German Chancellor Angela Merkel praised Madrid's austerity drive during a visit to Spain and gave her powerful backing to the country's economy minister in his bid to lead the Eurogroup forum of eurozone finance ministers.

Meanwhile France's cabinet was reshuffled amid a fight between pro-stimulus and pro-austerity politicians that had weakened the government under President Francois Hollande.

Also weighing on the common currency were the comments Friday by European Central Bank chief Mario Draghi, who strongly suggested that the ECB would take more measures to fight deflation and strengthen growth.