The euro briefly pared losses against the dollar on Friday but then resumed its decline as investors weighed results that showed most European banks had sufficient capital cushions to pass stress tests.
The euro briefly rose to $1.2900 EUR=, from around $1.2860, but then fell and was last at $1.2841, down 0.4 percent on the day.
Fear of a euro zone debt crisis and its impact on European banks drove the euro below $1.19 last month, its lowest level since 2006. It has made a swift recovery in July, though, and hit a 10-week high above $1.30 earlier this week. (Editing by Padraic Cassidy)