The dollar hit a one-month high versus the yen and firmed against other currencies ahead of a widely anticipated rate cut from the Federal Reserve later.
By 12.22pm, the euro was down 0.3 per cent at $1.46, sliding off a session high of $1.47 hit earlier. The dollar was up 0.3 per cent at 111.95 yen.
The US central bank is expected to lower rates by at least a quarter point from the current 4.50 per cent as the economy wrestles with a housing market downturn.
Investors are pricing in a one-in-four chance of a more aggressive 50 bps cut in benchmark rates, along with expectations for an up to 75 bps cut in the discount rate - at which banks borrow from the Fed - to help financial institutions shore up their balance sheets before the year-end.