The euro is falling victim to monetary policy divergence again.
The 19-nation currency weakened the most in three months against the dollar on speculation the European Central Bank will maintain its quantitative easing program, while the Federal Reserve moves closer to raising interest rates. The euro slid versus all of its major peers while the region’s stocks and peripheral bonds rose on speculation that Greece will soon clinch a deal to avoid default, increasing the euro’s appeal as a funding currency.
