May 5 (Bloomberg) -- The euro fell against the dollar and the yen on speculation the European Central Bank will cut interest rates to a record to counter a deepening recession, diminishing the allure of assets in the 16-nation region.
The euro slid versus 12 of the 16 most-active currencies after the European Commission yesterday said the euro-area economy will shrink 4 percent this year, twice the contraction projected three months ago. The dollar rose versus all but two of the currencies after the Wall Street Journal reported U.S. regulators will tell 10 lenders to raise more capital, spurring demand for the relative safety of the greenback. Australia’s dollar gained after its central bank left rates unchanged. read more
The euro slid versus 12 of the 16 most-active currencies after the European Commission yesterday said the euro-area economy will shrink 4 percent this year, twice the contraction projected three months ago. The dollar rose versus all but two of the currencies after the Wall Street Journal reported U.S. regulators will tell 10 lenders to raise more capital, spurring demand for the relative safety of the greenback. Australia’s dollar gained after its central bank left rates unchanged. read more
