The euro declined against the dollar on speculation the European Central Bank will expand stimulus to bolster growth in the 18-nation bloc.
The shared currency weakened versus 13 of its 16 major peers as billionaire hedge-fund manager David Tepper said investors should sell the euro because of ECB policy. The yen rallied against the majority of its counterparts as traders pushed back estimates for when the Federal Reserve will increase U.S. interest rates. Canada’s dollar led gains among major currencies, with commodities rising after Chinese growth beat forecasts. Brazil’s real slid.
“That weakness in euro-dollar we saw today was related to expectations that the ECB is looking at additional measures,” said Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut. “One thing the market will be focused on is how will the ECB go about expanding the balance sheet and can they generate economic growth, demand for credit and perhaps spur upside in inflation.”
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