The euro approached a two-year low versus the dollar before German data forecast to show business confidence declined for a seventh month.
The shared currency fell against major peers on Nov. 21 after European Central Bank President Mario Draghi said officials “will do what we must” to raise inflation. The yen was about 1 percent from a seven-year low to the dollar as polls showed Prime Minister Shinzo Abe’s party has the most support after he called early elections. The Aussie rose for a third day following China’s interest-rate cut at the end of last week.
“We’ve got a weak German economy and disinflation risks,” said Ray Attrill, the global co-head of currency strategy at National Australia Bank Ltd. in Sydney. “In the absence of any signs of an upturn in the German economy anytime soon, Draghi has the upper hand and therefore that plays to more euro weakness ahead.”