The single currency suffered after rating agency Moody’s warned it could downgrade three French banks. Moody’s said it would review the ratings of BNP Paribas, France’s largest bank, and peers Société Générale and Crédit Agricole, focusing on their holdings of Greek public and private debt.
The move came amid continued wrangling between eurozone finance minister and central bankers over who should bear the cost of a fresh rescue package for Greece.
German Chancellor Angela Merkel and French President Nicolas Sarkozy will meet on June 17 in Berlin, with pressure mounting for the leaders to resolve their differences over a rescue for Greece.
The euro remained weaker after strong US CPI report for May and a measure of manufacturing in the New York region unexpectedly shrank in June. 
The consumer-price index increased 0.2 percent, compared with the 0.1 percent median forecast of economists. The core measure, which excludes more volatile food and energy costs, climbed 0.3 percent, the biggest increase since July 2008.
The Federal Reserve Bank of New York’s general economic index dropped to minus 7.8, the lowest level since November, from 11.9 in May. The median forecast was 12. 
Sterling fell versus the dollar after a report showed Britain’s jobless claims rose in May at its fastest pace in almost two years in May.
So, U.K.’s jobless claims rose by 19,600 in May after a revised 16,900 increase in the prior month. The median forecast was for an increase of 6,500.