The euro was near an 11-week low amid speculation slowing inflation will prompt the European Central Bank to reinforce its dovish stance when announcing an interest-rate decision today.
Overnight implied volatility on Europe’s common currency rose toward the highest since 2012. The yen weakened against peers as Japanese stocks advanced, sapping demand for haven assets. The Australian dollar rose to a three-week high after record exports to China fueled an unexpected trade surplus.
“The upside is limited for the euro,” said Yujiro Goto, a London-based senior currency strategist at Nomura International Plc. “Even if there’s no rate cut this time, the ECB will still have to reinforce its accommodative stance.”
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