Ratings agency Standard and Poors downgraded the United States one notch to AA-plus from the top notch AAA level on concerns about growing budget deficits.

S&P said the decision reflected its view that the debt ceiling deal agreed last week fell short of what was needed

The euro traded against the greenback at $1.4372 in Wellington from $1.4280 in late New York trade on Friday.

The euro struggled as policymakers in Europe are considering measures to allay the region's debt crisis, with a buy-back of Italian bonds seen as one option.

The dollar fell against the Japanese yen at 77.85 from 78.38 yen on Friday, while it was trading at 0.7513 Swiss franc compared with Friday's late level of 0.7671.

Copyright Reuters, 2011