The euro rose slightly against the dollar as traders absorbed a slightly weaker-than-expected survey on the US manufacturing sector.
Investors were cautious ahead of other economic indicators later this week amid uncertainty about the prospects for the US economy and growing tension between Britain and Iran.
The euro rose to $1.3375 in late European trading, from $1.3356 late in New York on Friday.
Earlier today, the Institute of Supply Management said that its latest index of national industrial activity dipped to 50.9% from 52.3% in February, suggesting slower growth in the sector.
The price index surged meanwhile to 66.5% from 59%, suggesting increased price pressures for some commodities.
With higher inflation and weakening growth, the report indicates that the cut in interest rates that the market is hoping for may not happen in the near future.
However, any reading over 50 indicates expansion, so the report suggests the sector is growing at a modest pace.
The figure was slightly lower than the average Wall Street estimate of 51%.
A break down of the sub-indices showed that new orders, a measure of future growth, slumped in March to 51.6 from 54.9 along with employment in the sector, which fell to 48.7 from 51.1.
