Midday trade in New York: Euro tumbles as dismal data spurs talk of ECB rate cut

The euro plunged to a three-week low against the dollar and sank against the yen on Thursday after data showed a dour picture of the eurozone economy, raising speculation the European Central Bank will cut interest rates. The yen came off recent multi-year lows against the dollar as investors remained cautious a day ahead of a meeting of Group of 20 finance officials where exchange rates are expected to be an important topic, with a particular focus on the yen's recent weakness.
The euro last traded at $1.3328, down 0.9 percent, after earlier hitting a three-week low of $1.3313. The euro had hit a one-week high of $1.3520 on Wednesday and a 15-month high of $1.3711 on February 1. Against the yen, the euro last traded at 124.08, down 1.2 percent on the day, but above the session low of 123.79 yen. Against the yen, the dollar, was down 0.3 percent at 93.08, well below a 33-month high of 94.42 hit on Monday, according to Reuters data.