The euro briefly erased gains versus the U.S. dollar on the day in choppy trade on Tuesday as investors remained wary of taking on risk.
The euro fell as low as $1.2471, but soon recovered to last trade at $1.2486, up 0.1 percent on the day, according to Reuters data.
Rising Spanish and Italian bond yields, concerns about the logistics of Spain's bank bailout and upcoming Greek elections are weighing on the euro.
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