Euro hamstrung by Ukraine worries, dollar up

The euro slipped to a fresh one-year low early on Monday as the situation in Ukraine worsened, although a holiday in the United States and major central bank events later in the week will probably keep investors sidelined. The common currency fell as far as $1.3127, from around $1.3140 late in New York on Friday, reaching lows not seen since early September 2013. It last traded at $1.3131. Analysts said the risk to euro zone growth posed by the Ukraine conflict and stubbornly low inflation should keep the pressure on the European Central Bank to provide further stimulus at some stage, if not this week. The euro posted its second straight month of losses against the greenback in August, falling a further 1.9 per cent following a 2.2 per cent drop in July. Pressure on the euro helped the dollar index reach a high not seen in over 13 months. It peaked at 82.773.DXY, before easing back a touch to 82.742. The euro, though, firmed against the Swiss franc after the head of the Swiss National Bank (SNB) said it stood ready to intervene in the currency market to defend its cap on the franc, according to Reuters.