Euro Drops to 14-Month Low Amid Stimulus Speculation
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The euro dropped below $1.28 for the first time in 14 months after a report showed German business confidence fell more than forecast, fueling bets the European Central Bank will add further monetary stimulus.
The shared currency fell versus most of its 31 major peers after ECB President Mario Draghi said the exchange rate is in line with the divergence of monetary policy in Europe from other countries. The Bloomberg Dollar Spot Index rose to a four-year high as U.S. new-home sales climbed in August, bolstering the case for the Federal Reserve to raise rates. Brazil’s real and Russia’s ruble led gains versus major peers.