The euro traded 0.6 percent from its weakest in more than a month before the European Central Bank meets today following recent comments from President Mario Draghi that monetary policy will stay accommodative.
The 17-nation currency fell for a second day against the yen after Portugal’s bonds slumped and two of the nation’s ministers resigned, reigniting concern Europe’s sovereign-debt crisis is worsening. The Dollar Index remained lower after declining yesterday from a one-month high ahead of a U.S. jobs report that may help signal whether the economy is strong enough for the Federal Reserve to pare back its bond purchases.
“We’re not particularly upbeat about the euro,” said Hans Kunnen, chief economist in Sydney at St. George Bank Ltd. “The re-emergence of uncertainty following the resignation of the Portuguese finance minister becomes a central theme for us and there is a lack of perceived progress in the reform process in Europe. Any comments from the ECB would more likely weigh to the downside.”