The euro traded at almost its lowest level against the dollar since November as investors bet on a decline in the currency prior to the region's central bank meeting this week. Europe's common currency dropped 3.2 percent over the past three months as the European Central Bank slashed interest rates to help encourage inflation that slowed in July to an almost five-year low, reports BusinessWeek.
The euro held fairly steady at $1.3422 on Monday in New York after slipping to its lowest level since November 12 at $1.3367 last week. It was at 137.71 yen.
Valentin Marinov, head of European Group of 10 currency strategy at Citigroup Inc. in London said, "The downside risk for the euro persists, and our view is that the currency has further to go. The euro weakness was driven mostly by the ECB's policy and we expect more from the central bank. Their task is far from done," according to BusinessWeek.
Reuters reports that experts have recommended selling the euro against the U.K.'s pound, as they expect it will drop to 77 pence by the end of the year as the separation between the ECB and the Bank of England continues to grow.
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