The US dollar eased against the euro in early afternoon trade here, with speculators covering their short euro positions to lock-in profits ahead of key US data, dealers said. In New York trade overnight, the euro fell to 1.2296 usd, its lowest level since October 13, on the resignation of French Prime Minister Jean-Pierre Raffarin, who was replaced by Interior Minister Dominique de Villepin following France's rejection of the EU constitution, dealers said. They said de Villepin is considered a member of President Jacques Chirac's camp and, as such, unlikely to pursue the kind of market reforms that might prop up the single currency. "Raffarin's resignation was well-anticipated. Short-term speculators capitalized on de Villepin's appointment overnight to put further downward pressure on the euro, but the (dollar's) rally was short-lived," said Junya Tanase, a currency strategist at JP Morgan Chase. Investors also braced for a vote against the EU constitution in the Netherlands today, with dealers saying that if the defeat is overwhelming, this could spark another round of euro sales. "The market bias remains for a weaker euro. France's 'no' vote and the expected Dutch rejection today could damage credibility in the monetary union and its currency," Kenji Kobayashi, a senior dealer at Bank of Tokyo-Mitsubishi Ltd, said. Looking ahead, market players will focus on the release of the May ISM manufacturing index for the US, due for release later today, along with US monthly employment data Friday, for indications as to the strength of US economy, analysts said.