The euro struggled near recent nine-month lows against the dollar on Tuesday as investors focused on the prospects for lower interest rates in the euro zone. On Monday, the euro fell after monetary sources at the European Central Bank told Reuters ECB policymakers were considering a rate cut depending on how upcoming data play out, but the bank's policy board was split on whether monetary easing would help the sluggish economy. These comments came on the heels of European Union leaders' failure to adopt a seven-year budget and the rejection of the EU constitution by France and the Netherlands. "The rate story is influential now," said Peter Fontaine, currency strategist at KBC in London. "Markets will be watching comments from the ECB today and if they scale back some rate expectations that could help the euro." At 0740 GMT the euro traded 0.2 percent down from late New York levels at $1.2120. It was slightly weaker at 132.56 yen while the dollar traded steady at 109.28 yen. The Swedish crown fell sharply against both the dollar and the euro after the Riksbank cut interest rates by 50 basis points to a historic low of 1.5 percent.