The dollar rose against the euro Monday as talks to reduce the U.S. deficit failed.

A congressional deficit-reduction committee failed to agree on how to cut the deficit by $1.2 trillion over the coming decade.

Some analysts think the U.S. government's debt could be downgraded again if Congress finds ways to avoid automatic spending cuts that were supposed to be implemented in the event of a stalemate.

The Dow Jones industrial average fell nearly 250 points. Global stock markets also fell.

The euro fell to $1.3496 late Monday from $1.3518 late Friday. The dollar is seen as a relatively safe asset and tends to rise when markets are turbulent.

In other trading, the British pound fell to $1.5645 from $1.5787. The dollar fell to 76.94 Japanese yen from 76.97 Japanese yen and to 0.9170 Swiss franc from 0.9177 Swiss franc.

The dollar rose to 1.0385 Canadian dollar from 1.0266 Canadian dollar.