The euro fell to its lowest in two-and-a-half years against the US dollar on Monday as concerns about euro zone growth weighed on the single currency, while the greenback benefited from seasonal demand and uncertainty arising from the US-China trade war.
German annual inflation unexpectedly slowed for the third consecutive month in September, data showed on Monday. "The German CPI print this morning was a little bit on the disappointing side," said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.
Demand for dollars heading into the last quarter of the year is also boosting the greenback. "In Q4 we tend to see strong seasonal demand for the US dollar, and given the fact that euro/dollar is the most frequently traded pair in the foreign exchange market, that certainly means that we could be seeing some further downside in the euro going forward," Rai said.
The euro was last down 0.37% at $1.0898, after earlier falling to $1.0883, the lowest since May 2017. Investors are also focused on the US-China trade war, which is being blamed for slowing global growth. President Donald Trump's administration is considering delisting Chinese companies from US stock exchanges, three sources briefed on the matter said on Friday, in what would be a radical escalation of US-China trade tensions.
New Zealand's dollar dropped as low as $0.6247, its weakest since 2015, after a survey showed business sentiment weakening to an 11-1/2 year low in September, strengthening the case for a reduction in interest rates.