Euro Falls to Three-Month Low on ECB Easing Speculation

The euro fell to almost a three-month low amid signals from European policy makers of willingness to undertake further monetary easing and as anti-establishment political groups seek to win power at polls this weekend.

The yen dropped the most in two weeks as a report signaling an improving outlook for Chinese manufacturing boosted stocks and damped haven demand. The dollar rebounded from a key technical level versus the yen as a report showed sales of existing homes rose in April. Thailand’s baht declined as the nation’s military chief staged a coup two days after imposing martial law. The 18-nation currency weakened as Bundesbank President Jens Weidmann said at event in Frankfurt that unconventional monetary policy measures will be considered.