Euro drops after hitting a 3-year high on ECB talk

London

THE euro fell nearly half a per cent on Wednesday after rocketing to a fresh three-year high above US$1.23 as some investors ramped up bullish bets about the currency, though concerns voiced by policymakers this week damped broader optimism.

Reflecting the apparent disquiet among some ECB policymakers about the euro's vigour, a remark by European Central Bank policymaker Ewald Nowotny that the euro's recent strength against the US dollar is "not helpful" encouraged a bout of profit-taking before a policy meeting next week.