The U.S. dollar gained slightly Monday against the euro, which slipped below $1.30 in European trading. The 12-nation European currency was at $1.2980 in morning trading, down from $1.3031 late Friday.
The euro soared from about $1.20 in September to an all-time high of $1.3667 at the end of December on persistent concerns about the ballooning U.S. trade and budget deficits, but has since been holding around the $1.30 mark.
In other trading Monday, the British pound was at $1.8813, down slightly from $1.8871 on Friday. The dollar bought 103.71 yen, up from 103.55 yen.
European officials, who fear the stronger euro could hurt their region's economy by making exports more expensive, have urged the U.S. administration to address the deficit worries.
While Washington insists it has a "strong dollar" policy, many analysts believe the U.S. government is content to see the dollar fall because it makes U.S. exports cheaper.