Euro Drops for Fifth Day on Bets ECB Will Lower Rates
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The euro fell for a fifth day against the dollar as signs of economic weakness in the single-currency bloc fueled speculation the European Central Bank will cut interest rates as soon as at its meeting next week.
The 17-nation currency lost the most in a week since July 2012 after data yesterday showed the region’s inflation unexpectedly slowed and the jobless rate climbed to a record. The dollar gained versus 14 of its 16 major peers as a gauge of U.S. manufacturing rose to a two-year high. South Africa’s rand slid after the nation’s trade deficit grew more than forecast. A gauge of currency volatility increased for a second day.