Euro Drops to Six-Week Low as German Bond Auction Fuels Concern

The euro fell to a six-week low against the dollar after Germany received insufficient bids at a bond auction, adding to concern Europe’s sovereign-debt crisis is driving investors away from the region’s assets.

The dollar climbed versus all of its 16 most-traded peers as a gauge of European services and manufacturing shrank and data signaled China’s manufacturing will slip. The euro weakened further as European Union Economic and Monetary Affairs Commissioner Olli Rehn said the crisis is “ravaging Europe.” Brazil’s real was the biggest loser versus the greenback.