The euro touched a two-month trough versus the yen on Monday, as German Chancellor Angela Merkel’s efforts to form a fourth-term government failed, pushing Europe's largest economy closer to a political crisis.
Versus the yen, the single currency was last down 0.6 percent on the day at 131.43 yen.
The euro slumped 0.5 percent versus the greenback to $1.1735, retreating from a one-month peak of $1.1862 scaled on Wednesday last week.
The dollar was firm against its Japanese peer at 112.01 yen, having dipped a one-month trough of 111.89 yen in early trading.
The pound was stable at $1.32.