The euro weakened against its higher- yielding peers as the European Central Bank’s commitment to its package of stimulus measures boosted demand for currencies including Malaysia’s ringgit and South Africa’s rand.
The yen rose to a four-month high versus the euro on speculation the Bank of Japan will refrain from expanding stimulus at a meeting beginning tomorrow, diverging from the European Central Bank that added easing last week.
The success of anti-European Union group U.K. Independence Party may damp investor enthusiasm that pushed the pound to a 17-month high against the euro last week according to the world’s biggest currency trader Citigroup Inc.
Investors should consider buying the euro against its lower-yielding peers before inflation data that may prompt to the European Central Bank to reconsider its stance on further easing, according to Citigroup Inc.