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Euro, pound fall against dollar

Euro, pound fall against dollar

The euro fell against the dollar on Monday as investors looked to Thursday's meetings of the European Central Bank and the Bank of England. Analysts expect both banks to cut their interest rates.
The 15-nation euro bought $1.2661 in European morning trading, down from the $1.2708 late Friday after subdued trading because of the U.S. Thanksgiving holiday.
The euro was lower after figures released Monday showed that German retail sales for October were down 1.5 percent from a year earlier. That was a clear sign of consumer reluctance to spend.
The decisions by the ECB and BoE this week are expected to result in further rate cuts as the economy slows and inflation tapers off, analysts have said. Both banks cut their benchmark rates last month to 3 percent and 3.25 percent, respectively.
Cutting interest rates can prompt economic growth, but it also can undermine a currency as investors transfer funds in search of better returns.
The British pound fell to $1.5108 on Monday compared with $1.5412 on Friday.
Meanwhile, the dollar slipped to 94.03 Japanese yen compared with 95.65 yen in trading on Friday.


Updated : 2021-10-23 10:44 GMT+08:00