The euro gave up gains to weaken against the dollar on Monday, as yield differentials between U.S. Treasuries and German Bunds widened to multi-year highs, highlighting the monetary policy divergence between the United States and the euro zone.
Amid lower-than-usual volumes due to a holiday in some parts of Europe, the dollar held gains made after upbeat U.S. jobs data on Friday. The reassuring data bolstered risk appetite and underpinned higher-yielding currencies like the Australian and New Zealand dollars.
The euro fell roughly 0.15 percent near $1.36, having risen earlier in the European session. It was still some distance from a four-month low just above $1.35 hit on Thursday after the European Central Bank cut its main rates to record lows, imposed a negative rate on excess cash deposited with it and announced measures to pump money into the sluggish euro zone economy, aiming to ward off the risk of deflation.