RTRS: Euro extends losses, hits three-week low vs dollar
The euro hit a three-week low against the dollar on Monday, after poor Italian and Spanish inflation data and tax cuts in Germany were expected to add pressure on the European Central Bank to cut interest rates further soon.
The euro fell 2 percent to $1.3594 according to Reuters data, its weakest level since mid-December.
Traders in London said that euro/dollar losses snowballed after stop-loss orders were triggered around $1.3620/1.3625.
Against sterling, the single currency fell to 93.63 pence, also roughly 2 percent lower on the day.
"The inflation picture is changing and that will have important implications for potential estimations of what the ECB might do," said Jeremy Stretch, markets strategist at Rabobank in London, adding that this view was pushing the euro lower.
