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Euro falls slightly on dollar to $1.3287

The euro fell slightly against the dollar on Monday as investors looked forward to the inauguration of President-elect Barack Obama and hoped a massive stimulus package will kick-start the U.S. economy.

The 16-nation euro bought $1.3287 in European morning trading, down slightly from $1.3300 late Friday in New York.

With President-elect Barack Obama's inauguration on Tuesday, sentiment has been supported in recent days by hopes that the new U.S. administration will act boldly to revive the ailing American economy, a vital export market for Europe. Still, analysts say the optimism could quickly fade amid a litany of dismal earnings results.

On Friday, Citigroup Inc. and Bank of America Corp. announced plans to improve their operations after posting large fourth-quarter losses, while several U.S. companies announced they would cut thousands of jobs.

In other currencies, the British Pound bought $1.4716 Monday, down from $1.4746, after the British government announced a second raft of rescue measures for the banking sector to promote lending.

The dollar traded at 90.44, compared with 90.58 yen late Friday in New York.