Euro Falls Most in 2 Months on Growth Concern; Yen Gains

The euro dropped the most in two months against the dollar as services and manufacturing in the region shrank to a three-year low, adding to evidence the central bank will need to do more to spur growth.

The yen and the dollar strengthened against most of their major counterparts as demand for the perceived safety of those nations’ assets increased after separate reports showed China’s manufacturing and Japanese exports declined for a third month. The shared currency fell against all its major counterparts as Spanish bond yields rose for the first time in three days. Australia’s dollar and South Africa’s rand led losses among higher-yielding currencies.