The euro hit a record high against the dollar today but quickly retreated as traders took profits on the single currency's recent gains made on the back of concerns over geopolitical risks and the US trade deficit.
The single European currency also briefly rose to its highest level against the yen in almost two months as the weekend nationalisation of the failed Ashikaga Bank initially triggered a sell-off in Japanese shares.
The euro rose to around $1.2040 in early Tokyo trade, up about half a cent from late Friday levels, before pulling back to around $1.1981/85.
That compared with around $1.1740 when the single currency was launched in January 1999 and a record low of around $0.8225 set in October 2000.
The single currency also rose more than a half yen to around 132.30 yen its highest since mid-September, before retreating to around 131 yen.
Traders said dollar selling has been prompted by the growing deficit in the US current account, and at this point there's a desperate need for capital inflows, said Mr Tohru Sasaki, chief forex strategist at JP Morgan Chase.
Tensions in the Middle East also helped to soften the dollar.