The common currency of the European Union dove on Thursday as policy makers with the European Central Bank prepared to collect for an afternoon policy meeting that is likely to see the body slash interest rates as a measure of spurring the economy, Bloomberg reports.
After four trading sessions of gains against the monetary unit of Japan, the euro was pulled down by an economic report noting manufacturing in April shrank more rapidly than projected.
"The ECB will cut by at least 25 basis points today and I'm also in the camp that thinks the ECB should cut by 50 basis points," managing director Andrew Bosomworth with Pacific Investment Management Co. in Munich told Bloomberg on Thursday. "I wouldn't be surprised if they go all the way down in one shot today."
The euro's recent climb against the yen amounted to 0.5 percent.
The 17-nation monetary unit also slid against the world's reserve currency on Thursday in advance of policy makers convening their afternoon meeting, according to Reuters. The ECB meeting comes after the U.S. Federal Reserve said on Thursday it is prepared to augment bond purchases if needed.
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