The euro slipped against the yen and was flat versus the dollar on Monday after Italy's prime minister said he would step down early, putting the country's outlook in a state of flux and raising concerns about the euro zone's near-term prospects. The euro was down 0.1 percent on the day against the yen at 106.52 yen, falling for a third straight day. It dropped as low as 105.94 yen, its weakest in about two weeks.

Against the dollar, the euro was flat at $1.2927. Euro resistance remains at the $1.2940 level, traders said, with support at $1.2885 and $1.2860. The greenback dipped 0.1 percent for the day to 82.41 yen as traders said macro funds cut long dollar positions.

Copyright Reuters, 2012