The euro was little changed against the dollar today as investors looked to the Federal Reserve's upcoming policy meeting for clues on the outlook for US interest rates.
The euro was trading at $1.2615 earlier this morning.
The dollar eased last week as the market lacked fresh incentives to push the currency higher after it rallied earlier this month on a run of upbeat economic data that weakened expectations that the Fed could cut rates early next year.
Traders said the correctional phase appeared to be over for now, with more players showing interest in buying back the dollar at its dips.
The Fed is widely expected to hold rates at 5.25 per cent for the third straight meeting on Tuesday and Wednesday and repeat warnings on inflation, although many traders think the Fed may be done raising rates.