Euro drops as ECB prepares for key decision

The euro fell for a third day yesterday, its longest stretch of losses this month, on speculation that European Central Bank president Mario Draghi will consider adding to monetary stimulus.

The single currency weakened against 10 of 16 major peers even after ECB Governing Council member Ewald Nowotny signalled officials, who next decide on policy on Thursday, will not expand quantitative easing any time soon.

The Bloomberg dollar index rose for a third day after a report showing China’s economy expanded quicker than forecast strengthened the case for the Federal Reserve to raise interest rates in 2015.