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The euro edged up against the dollar on Monday, recovering after recent losses but still close to multi-month lows on concerns about the fiscal health of some euro zone countries.

Traders said investors were disappointed the weekend's Group of Seven meeting did not result in concrete action to tackle the sovereign debt issues of countries such as Greece, Portugal and Spain.

European ministers told their counterparts at a G7 meeting they would ensure Greece sticks to its budget-cutting plan, but analysts said more was needed to restore confidence the problems could not upset the global economic recovery. [ID:nTOE61702V]

The euro recovered a little on Monday, however, as investor aversion to risk eased, with European equities .FTEU3 up 0.7 percent, rebounding from three-month lows the previous session and helped by stronger commodity prices. [.EU]

"Euro/dollar and some other riskier currencies are slightly higher, so perhaps we have a little bit of consolidation for now, but it is very much open. The market is looking for what kind of reassurances may come with regard to the euro zone deficit situation and any statements will continue to have an impact," said Johan Javeus, SEB currency analyst in Stockholm.

"The late rally in the U.S. on Friday (in the euro and riskier assets) was partly on hopes that there would be more tangible suggestions from the G7 meeting for a solution, and in that sense the statement was a bit disappointing," he said. >>