Euro drops against most currencies amid concern

THE euro has fallen to an 11-month low against the dollar on concern that European leaders won’t agree on ways to expand the region’s rescue capacities as debt-strappedcountries struggle to fund their deficits.

The 17-nation currency dropped against most of its major counterparts after Chancellor Angela Merkel told German coalition politicians that the €500 billion cap on Europe’s planned permanent bailout fund will stay in place, according to two sources.

The dollar declined against the yen before the Federal Reserve holds a meeting today amid speculation that officials will maintain their pledge to keep borrowing costs at almost zero.