The dollar rose against most major currencies Monday on hopes that lawmakers in Washington will reach a last-minute budget deal.
If an agreement isn't struck by midnight, a series of broad tax increases and government spending cuts are set to kick in.
The euro fell to $1.3201 in late trading Monday from $1.3221 late Friday. For the year, the euro rose about 1.7 percent against the dollar.
The dollar rose to 86.71 Japanese yen late Monday from 86.07 Japanese yen late Friday and to 0.9149 Swiss franc from 0.9132 Swiss franc.
The British pound slipped to $1.6246 from $1.6152 and to 99.28 Canadian cents from 99.63 Canadian cents.
Trading was light Monday with many market participants out on vacation before New Year's Day.