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According to new data, manufacturing and services in the euro zone have sunk to new lows, although less than had been predicted.
Daragh Maher, a trading strategies expert at Calyon in London, said: "The data reminded markets a bit that the euro zone economy is not in great shape."
Mr Maher added that "the euro's losses are relatively modest in the context of its recent sharp gains against the dollar", reports Reuters.
Previously, the euro had surged against the dollar as repatriation flows into the US currency began to ebb. Market players took to covering positions in anticipation of the year end.
In related news, the poor state of sterling has led to holidaymakers receiving less than one euro per pound when they convert their money at UK airports.
