Euro’s longest losing streak against dollar

THE euro suffered its longest losing streak against the dollar since its inception in 1999 amid divergent policy expectations.

For a tenth consecutive trading session investors sold off the single currency as they expect the European Central Bank will maintain its loose monetary policy stance to stoke eurozone inflation, while the US Federal Reserve is poised to raise interest rates next month.

The euro fell by as much as 0.6pc to $1.0569, its lowest level since December 2015.

Mario Draghi, the ECB President, did little to help when he implied stimulus was still needed. Speaking at a conference in Frankfurt, he said the eurozone recovery will depend on “continued monetary support”, adding the ECB will “continue to act, as warranted”.

The euro also faces political risks including Italy’s constitutional referendum on Dec 4, and French and German elections next year.

Meanwhile, the trade- weighted dollar index, which has rallied since Donald Trump’s surprise US presidential victory, powered to a fresh 13½ year high of 101.48 as the US Treasury bond market resumed its sell-off and after Fed chairman Janet Yellen signalled a rate hike was imminent.

The US central bank is likely to raise rates “relatively soon”, she told a Congres- sional committee on Thursday. Fed policymaker James Bullard also echoed her views yesterday. “Markets are currently putting a high probability on a December move … I’m leaning towards supporting that,” he told the Frankfurt conference.

The greenback enjoyed its best two weeks against the Japanese yen since 1988, recording gains of 7pc.