The euro fell to its lowest level in almost a year versus the dollar as economists predict data tomorrow will show confidence deteriorated in the region, bolstering bets the European Central Bank will add to stimulus.
The shared currency held a three-day drop against the yen before a report tomorrow forecast by analysts to show German inflation stalled. ECB President Mario Draghi said at an Aug. 22 speech that inflation expectations have declined, before officials set policy next week. A gauge of the dollar versus 10 major counterparts was near a six-month high after U.S. consumer sentiment improved. New Zealand’s dollar rose after Fonterra Cooperative Group Ltd. maintained its milk-price forecast.
“The ECB’s preparedness to do large-scale asset purchases is now significant, and policy makers are looking for the ways in which they may be able to do that,” said Greg Gibbs, the Singapore-based head of Asia-Pacific markets strategy at Royal Bank of Scotland Group Plc. “The euro is going to fall further.”
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