Euro Reaches One-Year Low Versus Dollar on Economy; Yen Slumps

The euro reached the lowest level in almost a year against the dollar as signs the region’s economy is underperforming that of the U.S. damped demand for the shared currency.

Large speculators including hedge funds last week increased bets on drops in the euro versus the dollar to the most since July 2012. A report today showed euro-area manufacturing expanded at a slower pace than initially estimated, adding to the case for the European Central Bank to expand stimulus. The yen declined against all of its major counterparts before the Bank of Japan delivers its Monetary Policy Statement this week. Russia’s ruble slid to a record low.