The euro fell broadly on Monday as hopes for an increase in the euro zone's bailout fund faded and as investors reassessed a recent rise in European Central Bank interest rate expectations.

Uncertainty about whether Germany would support an increase in the lending capacity of the rescue fund, known as the European Financial Stability Facility (EFSF), clouded sentiment.

Europe set up the safety net fund, which can borrow on the markets with euro zone government guarantees of up to 440 billion euros, in response the debt crisis that forced Greece and Ireland to take bailouts last year. But a new package of anti-crisis measures is seen as unlikely to come any time soon.

Attention on Monday was focused on a meeting of euro zone finance ministers, at which an increase in the effective lending capacity of the rescue fund is expected to dominate discussion. more