The euro dropped for a fourth day versus the dollar, the longest skid in two months, as consumer prices in the region fell more than economists predicted to strengthen the case for asset purchases by the European Central Bank.
A dollar gauge climbed to the highest since 2005 as a private report showed U.S. companies added more workers than forecast before the Federal Reserve releases minutes of its last meeting amid signs it is moving toward raising interest rates. The 19-nation shared currency reached a nine-year low amid speculation ECB President Mario Draghi will announce a sovereign-bond buying program under the quantitative-easing strategy as soon as this month. Brazil’s real advanced against most major currencies.
“Everybody’s betting on Draghi to need to do something,” Ken Wills, a senior corporate dealer at USForex Inc., said by phone from Toronto. The CPI data “definitely puts the heat on him that he needs to open up quantitative easing to allow sovereigns to be included.”
The euro dropped 0.7 percent to $1.1810 at 9:37 a.m. in New York and touched $1.1809, the weakest level since 2006. The euro gained 0.2 percent versus Japan’s currency to 141.08 yen. It slipped 2.9 percent in the previous three days. The dollar strengthened 0.9 percent to 119.46 yen.
via Bloomberg
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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