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Euro Extends Falls On Poor German Growth Forecast

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The single currency, euro, fell to a nine-day low against the dollar on Friday after the Bundesbank slashed its growth outlook for Germany to make the the single currency at risk of more losses on prospects of an euro zone rate cut.

Euro Extends Falls On Poor German Growth Forecast

The euro was down 0.3 percent at $1.2927, having hit a low of $1.2917 as it retreated further from a seven-week peak of $1.3127 hit on Wednesday. On Friday, the central bank of Germany said it expected Europe’s largest economy to grow just 0.4 percent in 2013, and pointed to risks of a recession as the euro zone debt crisis takes its toll.

“The discussion on (negative) interest rates is what started the slide in the euro in the last 24 hours and the Bundesbank report has just compounded that,” said Neil Mellor, currency strategist at Bank of New York Mellon.

The dollar was last at 82.33 yen after hitting a session low of 82.175 yen after news of the earthquake in Japan.

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