The euro pulled back from its recent six-month highs but remained well-supported as vanishing worries about political populism and signs of improving economic conditions in Europe bolstered investor confidence.
The euro retreated from highs hit on centrist Emmanuel Macron's victory in France's presidential election, with investors taking profit on a roughly 3 percent gain for the currency since he won the first round two weeks ago.
The euro fell to $1.0921 from $1.1024, its highest level in six months, hit in early Monday trade on relief after centrist Emmanuel Macron's victory in France's presidential election.
Yukio Ishizuki, senior currency analyst at Daiwa Securities said, "The euro's retreat was driven solely by profit-taking. I think it is going to regain momentum over time."
Macron's resounding defeat of nationalist Marine Le Pen has relieved investors who had feared another populist upheaval after Britain's vote to exit the European Union and Donald Trump's election as U.S. president last year.
Investors are now focusing on when and how the European Central Bank could scale back its quantitative easing given the recent strength in the euro zone economy since the French election is over.
The currency bloc's GDP growth in the first quarter, due next week, is expected to have outpaced anemic 0.7 percent growth in the United States in the same period. Inflation jumped back to 1.9 percent in April.
ECB board member Yves Mersch said on Monday that the central bank is close to replacing its negative view on whether the euro zone economy will reach growth targets with a neutral one, and should adjust its policy guidance accordingly.
ECB chief Mario Draghi is also due to speak at Dutch House of Representatives on Wednesday.