Economics
Euro Posts Biggest Drop Since May as Monetary Policies Diverge
- ECB to help keep currency weak with QE as Fed seen hiking
- Hedge funds boost net short positions to most since January
Europe Presents U.S. Investors More Value, Says Choukeir
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The euro posted its biggest monthly decline since May amid speculation the European Central Bank will extend its asset-purchase program as the Federal Reserve prepares to raise interest rates.
The shared currency fell from the highest level in more than a week versus the dollar, extending an October slide that’s seen it weaken versus 11 of its 16 major peers. A global selloff in government bonds has pushed up yields, unlocking about $635 billion of debt for purchase via the ECB’s quantitative-easing plan.