Intensifying worries about the debt crisis in Europe are helping drum up demand for the dollar.
The euro skidded to $1.4060 in late trading Monday in New York from $1.4201 late Friday. The euro had dipped below $1.40 earlier in the day for the first time since March.
The British pound fell to $1.6119 from $1.6276. The dollar rose to 81.97 Japanese yen from 81.57 yen.
Regional elections in Spain over the weekend brought new politicians to power, triggering fears about the country's ability to cut its deficits. Investors suspect Greece will have to restructure its debts or need even more aid a year after it received emergency funds. Standard & Poor's lowered its outlook on Italy's debt this past weekend.
"Europe's failing approach to its debt crisis has renewed fears of a contagious sovereign default and a possible euro zone breakup," said Lena Komileva of Brown Brothers Harriman in a research note Monday.
European policymakers can't agree on how best to help Greece, which is still struggling a year after its 110 billion euros ($154 billion) emergency loan package was approved in spring 2010. The European Central Bank has said that renegotiating Greece's bond payments _ cutting the amount it owes or extending how long the country has to pay back debt _ would be catastrophic for Europe's banks, while European Union finance officials have suggested that pushing back bond repayments could help prevent a default. Such a default could hit the European banks that hold Greek bonds.
Policymakers have also said that more aid for Greece is contingent on further spending cuts and economic reforms, but Greek citizens have protested strongly against cuts the government is already making.
Greece's bailout package last spring was intended to calm default fears, but investors have not been reassured. The EU and International Monetary Fund have also extended aid to Portugal and Ireland.
"Given the level of debt currently weighing on Greece, a default looks more or less inevitable and, given increasing voter discontent, policymakers may well have their hands forced with respect to Greece leaving the euro," said CMC Markets analyst Michael Hewson.
Anxiety about possible defaults and debt levels has driven the euro about 6 percent lower in the past month. At the end of April, the euro had been worth nearly $1.49, the highest level since December 2009.
In other trading Monday, the dollar rose to 0.8830 Swiss franc from 0.8771 Swiss franc, and gained to 97.68 Canadian cents from 97.23 Canadian cents.