The euro was also under pressure after Fitch's warning on Friday that it could downgrade France and six other euro zone countries because it said a comprehensive solution to the region's debt crisis is "technically and politically beyond reach." The currency was also hurt by Moody's cut of Belgium's rating by two notches to Aa3 from Aa1 on Friday, citing risks to economic growth and the costs of bailouts of banks such as Dexia. The greenback was supported by safe-haven flows after North Korean state television reported the death of Kim Jong-il . Regional currencies such as the Australian dollar and New Zealand dollar were pressured by the announcement. "The euro bias is to the downside given the warnings we had on Friday," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. "But barring any new impetus to push the euro lower it should hold above $1.2940, the recent low." The euro was down about 0.1 percent at $1.3025 versus the dollar, within a cent of the 11-month low touched last week. The euro remains highly vulnerable to more European Union ratings downgrades after EU leaders failed to come up with a convincing solution to the debt crisis at a summit earlier this month. Traders said a break of last week's low would open up a possible test of the 2011 trough around $1.2860, although Audrey Childe-Freeman, EMEA head of currency strategy at JP Morgan Private Bank in London, said a lot of bad news was already reflected in the price of the single currency. The common currency was also under pressure against the Swiss franc, down 0.1 percent at 1.2195 francs after breaking below support at the 200-day simple moving average. The Swiss National Bank left its cap on the franc unchanged at 1.20 francs last week. The dollar was flat against the franc but gained 0.1 percent against the yen to 77.87 yen. The Australian dollar was last down 0.3 percent at $0.9943 while the New Zealand dollar was little changed at $0.76044. "Regional currencies remain pressured, but so far is there no long-term implication" of Kim Jong-il's death, said Esiner. Investors will focus on a euro zone finance ministers' teleconference call from 1430 GMT about the draft text of a new fiscal compact agreed earlier this month. The talks will also include the size of individual bilateral loans to the International Monetary Fund. Net-short euro contracts are at a record high using Commodity Futures Trading Commission data released on Friday, though analysts said the downtrend was unlikely to be broken by short covering. The last time euro net short positions were at a record low in May 2010, the euro fell around another 2 cents over the next month. "With net euro shorts at record highs while the euro/dollar is only at 11-month lows, the currency's downside potential remains ample," said Ashraf Laidi, chief executive at Intermarket Strategy Ltd in London. And with EU leaders still searching for a credible long-term solution to bolster the euro, any rallies are only expected to provide selling opportunities. "I can't see any euro rallies lasting for long," said Gavin Friend, currency strategist at NAB Capital in London. "The market can to some extent deal with a lower growth profile, but what it cannot manage is the ongoing policy paralysis in the euro zone," he added.