Thursday saw the common currency of the European Union lose value against the U.S. dollar in the aftermath of a report noting regional manufacturing and services this month have contracted more than economists expected during the month of February, Bloomberg reports.
Consequently, speculation mounted about the likelihood of the European Central Bank cutting interest rates as one method of strengthening the regional economic recovery. For the first time in about six weeks, the 17-nation currency fell lower than $1.32.
Foreign-exchange strategist Melinda Burgess with Royal Bank of Scotland Group Plc in London told the news service that the outlook for the monetary unit is not very bright. She said intervention by the central bank of Europe might present a hurdle for the euro.
The euro is forecast to drop to $1.30 by the end of March, the foreign-exchange strategist told the news source. The next 12 months will see the euro slip to $1.19.
Reuters reports the euro also slipped to its three-week trough against the Japanese yen, which came into demand after the economic data about the 17-nation bloc was released.
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