The euro swung between gains and losses against the dollar on Tuesday but ultimately fell from a two-month high after the eurozone rescue fund's first debt offer was oversubscribed and prompted selling.
Comments from German Vice Chancellor and Foreign Minister Guido Westerwelle on Tuesday rejecting calls for an increase in the eurozone rescue fund added to the euro's woes. Westerwelle comments to WDR radio station were reported by Dow Jones.
The British pound dived after a shock contraction in the UK economy last quarter. Midway through the New York session, the euro was trading 0.1 percent lower at $1.3626, well short of the session high of $1.3688 on trading platform EBS though off the session low of $1.3573. The dollar was last down 0.1 percent at 82.44 yen on EBS.