The euro headed for its biggest monthly decline since March as economists unanimously forecast the European Central Bank will unveil additional stimulus this week.
The 19-nation currency approached the lowest in seven months versus the dollar as investors are pricing in a 100 percent chance of a 10-basis-point cut in the ECB’s deposit rate on Dec. 3. A gauge of the dollar climbed to the highest since March as futures predict the Federal Reserve will increase interest rates in December, expanding the divergence between the two central banks.
The euro fell 0.1 percent to $1.0583 as of 11:16 a.m. in Tokyo after sliding to $1.0566 on Nov. 25, the lowest since April 14. The currency has weakened 3.8 percent in November, its biggest loss since a 4.2 percent decline in March.
The U.S. Dollar Index, which tracks the greenback against six major peers, gained 0.1 percent to 100.14 after rising to 100.23, the highest since March 16.