The euro was at 12-year lows against the broadly stronger dollar on
Monday as diverging monetary policies in the U.S. and the euro zone
continued to weigh.
EUR/USD was at 1.0512, close to Friday’s low of 1.0471, the weakest since January 9, 2003.
The common currency dropped steeply after the European Central Bank fired up its trillion-euro quantitative easing program last Monday, pushing euro area bond yields to new lows.
The euro became less attractive to investors because of lower bond yields, and amid growing expectations that the Federal Reserve could start rising interest rates mid-year.
Investors now await Wednesday’s Fed statement to see if it would drop its reference to being patient before raising rates and signal that it is ready to hike rates depending on economic data.
The euro sentiment was also damaged by uncertainty over Greece’s future in the euro zone, after euro area finance ministers rejected proposed economic reforms put forward by Athens in exchange for more loans last week.
In the meantime, USD/JPY was down 0.16% to 121.19, not far from last Tuesday’s eight year highs of 121.40. EUR/JPY was up 0.2% to 127.64, off Friday’s 20-month lows of 126.91.
