The euro weakened to an almost three-year low versus the yen as the inflation picture in the region deteriorated in February, adding to the case for the European Central Bank to increase monetary stimulus at its March 10 meeting.
The shared currency dropped to a one-month low against the dollar as consumer prices in the 19-nation bloc declined to minus 0.2 percent from a positive reading of 0.3 percent in January. The currency will probably sink to $1.05 per dollar by the end of the quarter before falling to parity with the greenback later in 2016, according to Alan Ruskin, global co-head of foreign-exchange research in New York at Deutsche Bank AG, the world’s second-biggest currency trader.
