Euro dips on possible ECB softer stance

London

THE euro fell more than half a per cent on Wednesday after a report suggesting the European Central Bank, rather than swinging decisively towards a tighter monetary stance this week, is preparing to cut its outlook for inflation.

The single currency had recovered almost 10 per cent against the dollar in the past five months, benefiting from broad greenback weakness but also on the view that rising inflation would prompt the ECB to raise interest rates in early 2018.