The euro held its biggest drop for a three-week period since November amid concern gains by euro-skeptic parties in European Parliament elections will hinder central bank efforts to bolster the region’s economic recovery.
The 18-nation currency touched a three-month low before European Central Bank President Mario Draghi speaks at a forum in Sintra, Portugal today, amid speculation the ECB will expand stimulus next month. New Zealand’s dollar was weaker after the nation’s trade surplus narrowed more than economists forecast. The yen held a three-day decline before Bank of Japan Deputy Governor Kikuo Iwata speaks today.
“In the absence of any other information, at least today, the elections might keep the euro subdued,” said Emma Lawson, a Sydney-based senior currency strategist at National Australia Bank Ltd. “All eyes are really on the next ECB meeting and what exactly are the easing measures they’re going to take, so that’s likely to be the bigger, longer-term determinant.”