Euro starts week sliding against US dollar

The euro has started the week a little lower against the dollar as concerns persist about Europe's government debt crisis.

The 16-nation currency was down to $1.3156 in Monday morning European trading from $1.3178 in New York late Friday.

European Union leaders agreed late last week on a permanent mechanism to tackle debt troubles after the current bailout fund of euro750 billion expires in 2013, but many analysts say they haven't done enough to calm debt markets now, Bloomberg reports.

The president of the European Central Bank, Jean-Claude Trichet, warned on Monday that Ireland needed to follow its bailout plan to the letter, while the central bank voiced "serious concerns" that a new law drafted by Dublin could force the bank to take losses on the collateral it accepts in exchange for loans to commercial banks.

Asian shares fell to their lowest in over a week on Monday, as thin year-end trading made for exaggerated moves, not helped by mounting tensions on the Korean peninsula, New York Times reports.