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Euro Weakens as ECB Reduces Economic Forecasts

The euro declined the most in a month against the dollar after European Central Bank President Mario Draghi said economic weakness will persist next year, suggesting the central bank has scope to lower interest rates.

The 17-nation currency dropped from almost a seven-month high against the yen after the ECB cut its growth forecasts and said it saw “downside risks” for the region. The yen strengthened versus most of its major counterparts as investors sought safer assets. New Zealand’s dollar rose to a two-month high against the greenback after the nation’s Reserve Bank said growth was likely to quicken.