Speculation about the central bank being set to cut interest rates pulled down the shared currency of the European Union on Tuesday as the 17-nation monetary unit fell from its one-week high against the U.S. dollar, Bloomberg reports.
The euro-region also saw the unemployment rate push to record highs last month, which also impacted the value of the euro while the pace of inflation slowed. The central bank of the U.S. begins two days of meetings on Tuesday, a development that is likely to influence the relationship between the euro and the dollar.
"The euro zone unemployment rate was at a disappointingly high level which certainly is of concern," FX research head Ulrich Leuchtmann with Commerzbank told Reuters on Tuesday. "This is a further argument for the ECB to cut interest rates."
Euro region joblessness advanced last month to 12.1 percent after having registered at 12 percent during February.
Regional inflation dropped to its lowest in three years, according to Reuters. Germany, the top economy in the 17-nation bloc, saw retail sales fall for the second-straight month in March.
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