The euro fell against the dollar, headed for a second consecutive weekly decline, before reports that may show industrial production in the region stalled in June and Greece’s economy shrank. The 17-nation currency was poised for its biggest weekly drop in three months against the yen as traders bet the European Central Bank may cut its key interest rate as austerity measures crimp growth. The Swiss franc pared gains against the euro even after data showed France’s economy stalled in the second quarter. The Australian and New Zealand currencies weakened before data that may show confidence among U.S. consumers dropped to the lowest level in more than two years. “The market is now factoring in rate cuts from the ECB and the data will potentially start to be a factor as well, as you have seen some slowing,” said Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney. “You continue to look at some of the weak data points out there and it suggests euro is going to come lower.” The euro weakened to $1.4202 at 8:53 a.m. in London, from $1.4241 yesterday in New York and $1.4282 a week ago. The common currency declined 0.5 percent to 108.89 yen, down 2.7 percent since Aug. 5, the most since the period ended May 6. The dollar bought 76.66 yen, from 76.84 yesterday. The Swiss franc was little changed at 1.08557 per euro, after yesterday’s 5.3 percent plunge. Industrial production in the euro area was unchanged in June after a 0.2 percent increase in May, according to a Bloomberg News survey of economists before a report from the European Union’s statistics office in Luxembourg today. To contact the reporters on this story: Keith Jenkins in London at kjenkins3@bloomberg.net; Monami Yui in Tokyo at myui1@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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