The euro headed for its biggest monthly decline in four months amid speculation the European Central Bank will add to monetary easing next week.
A gauge of the U.S. dollar was poised for its first monthly advance since January before U.S. reports tomorrow that economists said will show initial claims for jobless benefits decreased last week, adding to signs the recovery is gaining ground. The Russian ruble was the best performer versus the dollar this month among 31 major currencies. New Zealand’s dollar dropped against all of its 16 major counterparts today as a measure of business confidence worsened. The ECB led by President Mario Draghi meets on June 5.
“Draghi is not likely to disappoint the market having raised expectations greatly for the June meeting,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “He will at least meet expectations, and perhaps even over deliver, and therefore the euro does keep falling.”