Euro Heads Lower Against Dollar

Britain has been hurt by plunging house prices and tightened lending between banks despite record interest-rate cuts.

Cutting interest rates can undermine a currency as investors seek higher returns elsewhere.

The interest-rate play for the pound and euro may be diminishing in appeal as their respective central banks appear set to chop rates closer to those in the U.S., Japan and Switzerland - all hovering around zero.

In other trading, the dollar rose to 93.07 yen in trading Monday compared with 92.17 Japanese yen late Friday in New York.