The euro dropped against the dollar on speculation that the European Central Bank might hold off on raising interest rates, AP reports. The euro hit a record $1.4966 Friday as investors worried about US stability. It was down to $1.4732 this morning in European trading. Germany is feeling the pain of a strong currency, which hurts exports, and officials and consumers are concerned about a slowdown.
The German finance minister reported “worse than expected German consumer sentiment data” today, according to an analyst. Concern about the German economy and other developments triggered speculation that the ECB won't raise interest rates at its next meeting. The dollar gained incrementally over both the euro and the pound.