Greece Relief Means Buying Dollars as Euro, Aussie, Loonie Fall
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The euro dropped to a two-month low against the dollar after German Chancellor Angela Merkel signaled Greece may get limited debt relief, allowing traders to shift focus back to diverging monetary policy.
The single currency extended losses from last week when it tumbled 3 percent, the biggest weekly loss since May. Hedge funds and other large speculators boosted bets to the most in a month that the euro will weaken, while increasing wagers the dollar will advance, futures data show. Australia’s dollar slumped to a six-year low, while New Zealand’s gained.