The euro fell to a session low below $1.28 against the dollar in morning trading on Friday as investors grew more cautious ahead of the results of European banks' stress tests and as U.S. equity futures pared gains.

The euro hit as low as $1.2794 EUR=EBS, according to electronic trading platform EBS. It was last at $1.2799, down 0.7 percent. (Editing by Theodore d'Afflisio)