Euro drops 3 percent versus USD this week

Euro drops 3 percent versus USD this week

Story link: Euro drops 3 percent versus USD this week

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The euro was on track to drop 3.1 percent versus the US dollar this week and it was down almost 2 percent on the session to $1.5042 to the shared currency on sentiment that the European Central Bank is not likely to raise Eurozone interest rates anytime soon.

The declines came after ECB president Jean-Claude Trichet said that growth will be weak in the third quarter.

The euro also declined in relation to the Japanese yen, trading at ¥165.7253 to the shared currency at around 11 a.m. in New York, but the dollar gained on the yen to ¥110.1750.

The pound was also weaker against the greenback as the dollar traded at $1.9171 to the UK currency in late morning trade in New York after the UK’s Council of Mortgage Lenders reported that home repossessions were at their highest in 12 years in the first half of the year, while the Halifax (LSE: HBOS) said that house prices are at a 2-year low.

The South African rand was down to R7.7015 to the US dollar, down about 6.6 percent to the greenback since the beginning of the month, on news that while house prices are still growing there, that growth is slowing as it costs more to borrow money.

The Australian dollar was down to 98.19 cents US to the Aussie on speculation that interest rates there will drop and on declines in gold and oil prices, while the New Zealand dollar was down to 70.38p to the kiwi after going as low as 69.83 cents US.