Euro Slips to One-Year Low Against Dollar as Rate Bets Shift, German Data Weakens

The euro dropped to its lowest level in a year against the U.S. dollar on Monday. Traders are adjusting their expectations for interest rate moves in the United States and the eurozone.

European Central Bank President Christine Lagarde said there is not enough evidence of second-round price effects to justify a stronger policy response. The ECB raised rates earlier this month.

Weak economic data from Germany added pressure on the single currency. The shift in rate rise bets is moving against the euro, pushing the exchange rate lower.