The euro dropped against the dollar on Wednesday after European Central Bank governing council member Yves Mersch told Bloomberg News the central bank may revise down its euro zone growth forecasts for 2008.
"ECB's Mersch is throwing a spanner into the EUR market, highlighting the downside risks to growth and suggesting ECB needs to be flexible with regard to fighting inflation," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey. "His comments sent EUR/USD down to the overnight lows, which have just broken leading to follow-through selling."
The euro
last traded down 1 percent to $1.4662, close to the session low of $1.4645. The euro fell 0.6 percent against the yen to 157.03 .
Dollar/yen rose 0.3 percent to 107.12 . (Reporting by Nick Olivari and Gertrude Chavez-Dreyfuss, Editing by Chizu Nomiyama,)
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