The euro slumped for a fifth straight session against the US dollar on Friday to a 3-1/2 week low as falling European interest rates drove investors into greenbacks and the yen. "You can look at euro/yen, clearly breaking lower. The big picture globally is negative yields in the euro zone and long yields trading at incredibly low yields, substantially lower than Japanese yields," said Jens Nordvig, global head of currency strategy at Nomura in New York. "That is triggering this persistent (fixed income) asset allocation shift out of euro zone," he said.
European Central Bank measures to loosen monetary policy via a program of bond buying contrasts against the US Federal Reserve's trajectory for tightening policy after ending its own massive stimulus plan which is credited with helping boost economic growth
Against the yen, the euro fell about 1 percent to 127.26 yen its lowest point in four weeks before recouping ground to trade at 127.66 yen, down 0.68 percent.
One spot of weakness for the dollar, marring its general push higher is against the yen. It fell 0.33 percent to 120.175 yen.
The euro traded around $1.06160, off 0.40 percent on the EBS trading platform in mid-morning New York trade. It had slumped to $1.05670, its weakest level since March 17. The euro is on track for its worst week against the greenback since September 2011.
Sterling hit a five-year low of $1.4585 before easing back to $1.4651, still off 0.41 percent on the day.
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