Euro Weakens as CPI Fuels ECB Easing Speculation; Rand Advances

The euro fell against most of its 16 major peers on speculation a deteriorating outlook for consumer prices may prompt the European Central Bank to add monetary stimulus next week.

The 18-nation currency dropped as consumer inflation remained below 1 percent at an annual rate last month and ECB Executive Board member Peter Praet said the central bank has tools to use if its mandate to maintain price stability. South Africa’s rand led gains among major currencies on optimism the economy strengthened last quarter. China’s yuan extended a decline from its biggest weekly drop in more than two years after the central bank lowered the official reference rate.