The euro stayed on the back foot early on Tuesday, having extended its decline particularly against the Swiss franc overnight as markets toyed with the idea of another round of policy easing by the European Central Bank.
Hot on the heels of dovish comments from the head of the ECB, data on Monday showed German business sentiment sagged for the fourth month running, while a row over a lack of economic growth led the French government to resign.
The common currency skidded to its lowest in nearly two years on its Swiss counterpart to 1.2072, a move that could test the Swiss National Bank’s three-year old pledge to cap its currency at 1.20 per euro.
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