The euro fell to a five-week low versus the dollar after a gauge of German investor confidence declined for a fifth month, fueling speculation the European Central Bank will take measures to boost the region’s economy.
The U.S. currency strengthened for a third day against a basket of major peers as an upward revision in March retail sales offset concern that the April gain that trailed forecasts signaled a slowing economy. Russia’s ruble headed for a three-month high on bets Western nations won’t rush to impose tougher sanctions. A measure of volatility rose from a 2007 low.
“The weakness in euro won’t sustain unless the ECB comes in with aggressive easing that’ll lead to the expansion of balance sheets,” Sireen Harajli, a strategist at Mizuho Bank Ltd. in New York, said in a phone interview. “The year-on-year retail sales really isn’t that bad. That gave a little bit of support for dollar-yen.”
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