Euro Falls Most Since January With ECB Forecast to Reduce Rates

The euro fell the most since January on speculation the European Central Bank will add stimulus next week to ward off deflation and bolster economic growth.

The 18-nation currency reached a more than three-month low as ECB President Mario Draghi said earlier this month that the euro’s strength is cause for “serious concern.” The yen advanced versus the dollar for a second month as a government report showed inflation accelerated to the fastest in more than two decades in April, reducing the prospect of additional stimulus by the Bank of Japan. The ECB is forecast to cut its deposit and main refinancing rates when it meets June 5.