Euro Falls Below $1.30 as Economic Weakness May Spur ECB Moves

The euro fell below $1.30 for the first time in two months after reports showed the region’s manufacturing contracted in February and unemployment climbed to a record.

The 17-nation currency extended a fourth weekly loss against the greenback, the longest streak since June, as signs the region remains stuck in a recession backed the case for the European Central Bank to cut interest rates. The Dollar Index rose to the highest level since August as the U.S. government’s failure to avoid automatic budget cuts, known as the sequester, spurred investors to seek safer assets. The pound tumbled after a British factory index unexpectedly shrank in February.