The euro slid from two-week high against the dollar on Monday on concern the euro zone debt crisis could spread to European nations so far thought to be safe, with the economic outlook and rising political risks likely to keep it under pressure. Analysts said sentiment towards the common currency was bearish, with most investors looking to sell it on any rally before debt auctions this week in Italy and the Netherlands.
The euro fell 0.7 percent to $1.3129, holding below Friday's peak of $1.3226, according to Reuters, which was logged after a near 1 percent rally in the week, its best since late February. Its decline to session lows after the Dutch resignation news pushed it below support at its 100-day simple moving average currently at $1.3118. The euro, which lost 1.1 percent against the yen, gained no support from a weekend deal to double the International Monetary Fund's firepower to contain the debt crisis. The dollar shed 0.5 percent against the safe-haven yen to trade at 81.15 yen.