Euro Falls as Wagers on Short-Term Rates Are Damped; Pound Drops
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The euro fell versus the dollar after a European Central Bank official said the ECB doesn’t have a view whether banks should repay funds when the possibility comes up, damping bets short-term interest rates will rise.
The shared currency slid from almost the highest since February 2012 after ECB Executive Board member Benoit Coeure said he doesn’t expect repayments to affect the Eonia rate, an overnight interest rate for the interbank market. The yen and dollar rose versus most major peers, while sterling dropped after U.K. retail sales unexpectedly fell.