Euro Falls, Set For Monthly Drop Before Italy Auctions

The euro was poised for the biggest monthly decline since September, before a sale of Italian debt tomorrow and data this week forecast to confirm that the prolonged debt crisis is hurting the region’s economy.

The 17-nation currency was 0.2 percent from the lowest since July 2010 after yield premiums on Spain’s securities over Germany’s rose to the most in 17 years. The Australian and New Zealand dollars slid versus the majority of their major peers as concern Europe’s fiscal turmoil is spreading and hurting economic growth curbed demand for higher-yielding assets.