The euro was mired near a two-month low on Thursday ahead of a European Central Bank meeting that could signal monetary easing as growth in the currency zone falters.
Sentiment towards the single currency took a blow after data showed Germany’s manufacturing sector contracted at the fastest pace in seven years while French business growth unexpectedly slowed, sending European bond yields lower.
The dollar found support after U.S. Treasury Secretary Steven Mnuchin said he would not advocate for a weaker currency.
The common currency traded at $1.11415 after touching $1.11270, its lowest since May 31.
The euro has fallen 2.0% so far this month on increased speculation the ECB would join other central banks in easing policy as a trade war between the United States and China weakens the global economy.
Sterling was a shade higher at $1.2484, staging a modest recovery from a 27-month low of $1.2382 reached last week.
Source : Reuters