The euro fell on Tuesday on account of the relief rally extended by an emergency aid package aimed to inhibit the spread of a euro zone debt crisis dissipated and the focus went back to structural problems plaguing the bloc.

European Union finance ministers, central bankers and the International Monetary Fund extended an emergency package of loan guarantees to euro zone members during the weekend in a bid to boost the bond markets and the euro.

At 0930 GMT on Tuesday, the euro had gone back to trade with losses worth nearly 0.8 percent at $1.2675, with traders outlining sales from macro accounts.

"Monday was a relief rally and now it's back to reality as people are looking at the facts. Greece has to consolidate its finances and the euro is still not attractive," quoted, Antje Praefcke, currency strategist at Commerzbank.

Greece is witnessed to be all set to ask the EU and IMF on Tuesday for a first loan of 20 billion Euros to prevent bankruptcy following the government's extension of radical pension reforms that have cautioned the whole country.

However, investors are dicey whether the Greek government will be successful to initiate the austerity measures required to improve its public finances. Other states such as Portugal and Spain also have budgetary concerns.