The euro is on course for an eighth straight week of losses against the dollar, as investors respond to a widening gulf between a faltering economy in the eurozone and more robust growth in the US.
The currency has lost more than 5 per cent since mid-July to trade at $1.07. The steady grind lower reflects intensifying doubts over whether the European Central Bank will raise interest rates again at its meeting next week amid widespread signs that the eurozone economy is heading for a downturn.
Industrial production in Germany — the eurozone’s traditional growth engine — fell for a third month in a row in July, figures on Thursday showed. Meanwhile, US jobless claims fell unexpectedly, the latest sign of resilience in the labour market. That is likely to encourage the US Federal Reserve to hold rates at a high level for longer, boosting the appeal of the dollar.