New concerns over Greece's future spilled through the markets after news that German Chancellor Angela Merkel was headed to Athens for talks on Tuesday.
At 2200 GMT, the euro was at $1.2967 compared to $1.3031 late Friday.
The yen pushed higher after falling most of last week, with the dollar buying 78.31 yen compared to 78.64, and the euro at 101.57 yen from 102.48.
In Europe Monday, the 500 billion euro bailout fund, the European Stability Mechanism, was officially launched, but that step forward failed to calm rising concerns over the single currency.
"Much of what is driving the fear is the continued uncertainty in the eurozone," said Neal Gilbert of GFT.
"The fear is evident in the slide of risk assets as equities in Europe, commodities, and risk currencies are all down."
"Not only is Spain still in the crosshairs of investor dismay in that they still haven't requested a bailout despite many feeling that it is a foregone conclusion, but also Greece is back in the headlines.
"German Chancellor Angela Merkel is visiting the woebegone nation and rumors have cropped up that indicate that she is there to discuss a Greek exit strategy."
The British pound fell against the greenback, to $1.6022 from $1.6129, while the dollar traded at 0.9331 Swiss francs, up from 0.9291 francs.