The euro was 0.2 percent from a two-week low before a German report forecast to show business confidence fell in the currency bloc’s largest economy, fueling speculation the European Central Bank will cut interest rates.
New Zealand’s dollar jumped after central bank Governor Graeme Wheeler said growth has picked up. Australia’s currency dropped versus all of its major peers after data showed the nation’s inflation slowed. The yen swayed between gains and losses as investors speculated whether comments from the Bank of Japan (8301) this week can weaken it to 100 per dollar for the first time in four years.
“The euro is susceptible to downward pressure,” said Masato Yanagiya, the New York-based head of foreign-exchange and money trading at Sumitomo Mitsui Banking Corp., a unit of Japan’s second-biggest financial group by market value. “As economic data from Europe are very bad, expectations of a rate cut by the ECB are rising gradually.”
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