The euro surrendered all gains and traded lower against the dollar on Tuesday as expectations evaporated that a Greek debt restructuring deal could be close, while a resurgent yen raised concern Japanese authorities could intervene to weaken it. The dollar fell to its lowest level against the yen since the last intervention in October, under pressure after the US Federal Reserve said last week it was likely to keep interest rates near zero until late 2014.
The euro was still on track for its best monthly performance since October, the last period it gained on the month, but was down 0.2 percent on the day at $1.3103, according to Reuters data. It peaked at $1.3213, not far from a six-week high hit last week of $1.3228, according to Reuters data. The euro faces resistance at that level and around the 38.2 percent retracement of its October-January slide, around $1.3235 using Reuters calculations.
Against the yen, the dollar hit a three-month low of 76.13 , using Reuters data, well off last week's peak of 78.28. The dollar was last trading little changed on the day at 76.27 yen, with traders citing talk of dollar bids down towards 76.00 yen and stop-loss dollar offers below 75.80 yen.
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