The euro slumped to a five-month low against the dollar as traders
pared bets that the European Central Bank will raise interest rates as
the economy slows.
The euro also fell to a three-week low versus Japan's currency after
ECB President Jean-Claude Trichet said economic growth will be
``particularly weak'' through the third quarter. The dollar headed for
its biggest weekly gain against the yen in almost two months as oil
dropped 19 percent from a record. The New Zealand and Australian
dollars led losses among the most- traded currencies on speculation
central banks will cut rates.
``Trichet triggered the euro's decline when he went out of his way to
highlight weakness in the economy,'' said Saburo Matsumoto, senior
manager of foreign-exchange sales at Sumitomo Trust & Banking Co.
in Tokyo. ``A rate increase is off the cards for the time being, and
the euro is likely to adjust lower.''
EUR/USD fell from $1.5340 to $1.5140. Later the rate retreated to $1.5170.
GBP/USD followed thу euro and slumped to $1.9260 from $1.9440.
USD/JPY held within the Y109.30/00.