“The euro fell to a two-week low against the dollar as a report showed services and manufacturing output in the region shrank for a 15th month, adding to signs the recession is worsening.
The single currency weakened against 13 of its 16 major counterparts as the data added to speculation the European Central Bank will cut interest rates to spur growth. The yen and the dollar strengthened after an industry report showed Chinese manufacturing expanded at a slower pace, increasing demand for safer assets. Sweden’s krona dropped to a four-month low against the U.S. currency after the nation’s unemployment rate unexpectedly increased in March.
“The overall picture is pretty bleak,” said Lutz Karpowitz, a senior currency strategist at Commerzbank AG in Frankfurt. “The likelihood of the ECB cutting interest rates increased today. All in all, it’s negative for the euro.”
The euro declined 0.6 percent to $1.2985 at 10:02 a.m. London time after sliding to $1.2974, the weakest level since April 8. The 17-nation currency dropped 1.2 percent to 128.16 yen. Japan’s currency gained 0.5 percent to 98.69 per dollar….”
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