The euro slid for a second day against the dollar as investors weighed the prospects of additional easing policies from the European Central Bank.
The shared currency also fell against the yen. A report yesterday by Reuters that the ECB was considering buying corporate debt helped send the euro tumbling by the most in a week versus the dollar. Governing Council member Luc Coene said the institution has “no concrete proposal” to buy such securities, in an interview published today in L’Echo newspaper. The dollar was little changed against the yen before a report today that economists said will show consumer prices were unchanged in September from a month earlier.
The euro slid 0.2 percent to $1.2691 as of 7 a.m. New York time after earlier gaining as much as 0.2 percent. It fell 0.7 percent yesterday, the biggest decline since Oct. 14. The region’s currency weakened 0.2 percent to 135.80 yen. The dollar was at 106.99 yen.
Investors should bet against the euro because of central-bank policy, David Tepper, who runs the $20 billion Appaloosa Management LP, said at the Robin Hood Investors Conference in New York yesterday, according to two people who attended the event and asked not to be identified because it was private.
The ECB has already introduced a negative deposit rate, started a program of targeted cheap loans and pledge to expand its balance sheet through purchases of asset-backed securities.
A Purchasing Managers Index due tomorrow will show manufacturing in the region contracted for the first time in 16 months.
The euro has dropped 0.6 percent in the past week. The dollar gained 0.7 percent and the yen fell 0.4 percent.
Concern about a strong dollar and slowing global growth has prompted traders to temper expectations of when the Federal Reserve will increase its benchmark rate. Futures showed bets on an October 2015 increase at 46 percent, down from 85 percent at the end of September this year.