The euro hit a two-month low against the dollar on Monday as expectations grew of radical European Central Bank action to head off the risk of deflation, while emerging market gloom helped push the U.S. currency down versus the yen.
The euro, which fell on Friday after weaker-than-forecast inflation data from the currency bloc, also plumbed a two-month trough against the yen and dropped to its lowest in more than six weeks against the Swiss franc.
The euro tumbled as far as $1.34765, its weakest since late November. It later recovered some ground to trade up 0.2 percent at $1.3512.
Euro zone inflation for January showed a surprise drop to 0.7 percent year-on-year. Analysts had expected prices to rise 0.9 percent.