EUR/USD Remains Below 1.18 on Stimulus Outlook

The euro fell to a nine-year low as officials fueled speculation that the European Central Bank will begin buying government bonds as early as next week to stave off deflation.

A gauge of the dollar gained to almost the highest in a decade on bets the Federal Reserve will raise interest rates this year. Richard Clarida of Pacific Investment Management Co. said he sees the euro falling to parity. The shared currency slid after a Greek official said the nation may exit the currency union as the opposition party holds a slim lead heading into elections. Sweden’s krona climbed versus the euro as consumer prices fell less than analysts estimated. Russia’s ruble dropped with oil.

“The euro has been pressured by several factors, including prospects of central-bank policy action and concerns regarding political developments in Greece,” said Sireen Harajli, a Mizuho Bank Ltd. strategist in New York. “It seems that there is very little to support the single currency.”


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