The U.S. dollar rose against most major currencies Monday as euro zone's political uncertainties continued to pressure on the euro and concerns over China's economy reduced risk appetite.

The euro fell against the dollar to a nearly four-month low as Greece was still struggling to form new government and German Chancellor Angela Merkel's conservatives party failed in a regional election on Sunday. The euro zone's ongoing austerity plans, which were thought critical to solving the region's debt problems, were in threat. Some investors feared that Greece might be forced to exit the euro zone.

Concerns over China's economic slowdown also reduced risk appetite. Riskier currencies with higher yields went down, while the safe haven dollar and Japanese yen got boosted.

In late Monday trading, the euro retreated to 1.2847 dollars from 1.2925 dollars. The dollar rose to 1.0027 Canadian dollars from 0.9999, and gained to 0.9351 Swiss francs from 0.9294. The dollar bought 79.86 Japanese yen, lower than 79.90 in the previous session.

The British pound rose to 1.6105 dollars from 1.6074.