Euro Weakens Below $1.32 First Time in Six Weeks as Output Drops

The euro declined below $1.32 for the first time in six weeks as an industry report showed services and manufacturing in the region shrank at a faster pace in February than economists forecast.

The 17-nation currency fell for a third day versus the yen on speculation the European Central Bank may have to keep borrowing costs lower for longer to help spur a recovery. The Dollar Index fell from a five-month high as manufacturing in the Philadelphia region unexpectedly contracted. The pound rose the most in two weeks against the euro.