On Monday the euro fell to nine year lows against the dollar. The European currency has fallen 0.3 percent in the past week, the third
worst performer of 10-developed nation currencies tracked by
Bloomberg Correlation-Weighted Indexes. The dollar gained 1.6
percent and the yen rose 1.9 percent.
The single currency's plunge was caused mainly by speculation the European Central Bank is moving closer to large-scale bond purchases. The euro also weakened as Greece began an election campaign that may see victory by an anti-austerity party.
Today the shared currency slid as much as 1.2 percent after
President Mario Draghi last week gave his clearest signal the
ECB will start quantitative easing.
A gauge of the dollar headed for its highest ever close as the Federal Reserve moves toward raising interest rates. New Zealand’s dollar and South Africa’s rand fell along commodity currencies
Greek opposition leader Alexis Tsipras said his Syriza party would end German-led austerity if it wins the Jan. 25 vote, while German Chancellor Angela Merkel is ready to accept a Greek exit - a development Berlin sees as inevitable and manageable if Syriza wins, according to Der Spiegel magazine.
The Bloomberg Dollar Spot Index (BCOM), which tracks the U.S. currency against 10 major peers, rose for a second day. The gauge climbed 0.3 percent to 1,144.17, set for the highest close since its inception date of Dec. 31, 2004.
