The euro hit a two-week low against the dollar on Tuesday after weak German data fanned concerns about the euro zone economy and speculation the European Central Bank could cut interest rates.
A survey showed Germany's private sector shrank for the first time in five months in April, overshadowing improvements in French data.
The weak German data added to worries about the global economic outlook after earlier figures showed Chinese manufacturing growth slowed in April. This helped the yen higher and drove the commodity-linked Australian dollar to a six-week low against the U.S. dollar.
(Read More: Germany Drags Down Growth in Euro Zone)
The euro fell as low as $1.2973 and threatened to break decisively out of the $1.30 to $1.32 range that has held for the past couple of weeks. It was last down 0.4 percent on the day at $1.3009.