Euro may drop against dollar on rate cut plan

THE euro may drop against the dollar for a third week on speculation the European Central Bank will signal it's prepared to reduce its benchmark interest rate later this year, a recent survey indicates.

Twenty-eight of the 54 advised selling the euro against the dollar. Eighteen recommended buying it and eight said they would hold the currency.

The ECB may reduce borrowing costs in coming months as the euro's appreciation slows inflation and economic growth, said analysts including Donald Straszheim, adding that the ECB may cut its rate to 1.5% by mid-year.