The euro is heading for its weakest quarterly showing since the climax of the eurozone crisis in a lift to policy makers as they aim to fend off the threat of deflation and lift the bloc’s flagging economy.
The single currency fell below $1.28 to the dollar for the first time in more than a year yesterday, taking its losses against the greenback since the start of July to 6.6 per cent. That puts it on course for its steepest quarterly fall since the autumn of 2011, when fears of the currency bloc imploding were at their height.
The depreciation stems from the radical steps taken by the European Central Bank to loosen monetary policy since June, including this month’s cuts in interest rates and the announcement it would start buying private sector assets.