April 20 (Bloomberg) -- The euro fell to a one-month low against the dollar and weakened against the yen as European Central Bank policy makers disagreed on the measures needed to combat the recession.
The euro fell versus 10 of the 16 most-active currencies after ECB Executive Board member Lorenzo Bini Smaghi said the bank’s benchmark 1.25 percent interest rate is “very close” to its floor, Financial Times Deutschland reported. Two council members last week said they may support a rate under 1 percent. The Dollar Index approached the strongest level in three weeks on speculation a U.S. report today will show a gauge of the economy’s outlook improved.
“Investors fear that European policy makers aren’t doing enough to safeguard the economy,” said Danica Hampton, a currency strategist at Bank of New Zealand Ltd. in Wellington. “Any sign that the euro zone economy is deteriorating will likely add to the downward pressure on the euro.”
The euro dropped to $1.2992 as of 7:49 a.m. in London from $1.3044 in New York on April 17. It earlier declined to $1.2967, the lowest level since March 17. Europe’s currency fell to 128.53 yen from 129.33 yen, after touching 128.17, the weakest since March 30.
The yen climbed to 98.93 per dollar from 99.16 last week. It advanced to 56.10 versus the New Zealand dollar from 56.32, and rose to 71.13 versus the Australian currency from 71.64.
The euro fell versus 10 of the 16 most-active currencies after ECB Executive Board member Lorenzo Bini Smaghi said the bank’s benchmark 1.25 percent interest rate is “very close” to its floor, Financial Times Deutschland reported. Two council members last week said they may support a rate under 1 percent. The Dollar Index approached the strongest level in three weeks on speculation a U.S. report today will show a gauge of the economy’s outlook improved.
“Investors fear that European policy makers aren’t doing enough to safeguard the economy,” said Danica Hampton, a currency strategist at Bank of New Zealand Ltd. in Wellington. “Any sign that the euro zone economy is deteriorating will likely add to the downward pressure on the euro.”
The euro dropped to $1.2992 as of 7:49 a.m. in London from $1.3044 in New York on April 17. It earlier declined to $1.2967, the lowest level since March 17. Europe’s currency fell to 128.53 yen from 129.33 yen, after touching 128.17, the weakest since March 30.
The yen climbed to 98.93 per dollar from 99.16 last week. It advanced to 56.10 versus the New Zealand dollar from 56.32, and rose to 71.13 versus the Australian currency from 71.64.
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