The euro fell on Monday, as the latest data added to concerns over the eurozone economy as investors increasingly bet on prospects of loose monetary policy until year-end. Sentiment has begun to turn sour on the single currency again, after a rally in late July and early August, as focus has shifted back to the eurozone and away from the US economy.
Support dwindled on Friday after European Central Bank Governing Council member Axel Weber said the ECB should extend its loose monetary stance. Figures compiled by the Commodity Futures Trading Commission showed currency speculators extended euro short positions in the week ended August 17. In late morning trading in New York, the euro was down 0.9 percent against the yen at 107.76 yen after falling to its lowest in nearly eight weeks.
Against the dollar, the single currency was 0.3 percent lower at $1.2656, after it broke through below its 55-day moving average at $1.2677, according to Reuters data. The dollar was down 0.5 percent at 85.18 yen, close to 84.72 yen hit earlier this month, its lowest since July 1995.