Fears that a proposed bank bailout for Cyrus could reignite Europe's debt crisis is pushing the euro lower against the dollar.

The euro is trading at $1.2971, after falling to a three-month low of $1.288 earlier. The euro was worth $1.3054 late Friday.

As part of a national bailout, Cyprus is proposing to seize up to 10 percent of people's savings from banks in the small Mediterranean island nation. Investors are worried that savers will start taking their money out of banks across Europe, just like Cyprus residents did over the weekend.

In other trading, the British pound rose to $1.5104 from $1.5078.

The dollar fell to 95.15 Japanese yen from 95.50 Japanese yen.

The dollar rose to 0.9447 Swiss franc from 0.9405 Swiss franc.

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