The euro dropped versus other majors on Tuesday in New York as lower global stocks reduced risk appeal. Some disappointing economic data from Germany also weighed on the common currency.
Data released by the Federal Ministry of Economics and Technology showed German industrial production fell 1.8% month-on-month in October after an upwardly revised increase of 3.1% in September. The latest decline was the first fall in three months. Economists had forecast an increase of 1% for October.
German factory output fell 1.8% month-on-month in October following an upwardly revised increase of 3.1% in September, the Federal Ministry of Economics and Technology said Tuesday. That was the first fall in three months. Economists had forecast an increase of 1%. Production of capital goods slipped 3.5% on a monthly basis after rising 6.6% in September.
The euro dropped as low as 1.4711 in early afternoon trading against the U.S. dollar. The European currency has shed more than 3.5 cents since a better-than-forecast U.S. jobs report.
The euro gave back early gains against the British pound and moved near 0.9035. The 16-member currency had touched above 0.9090 earlier in the day.
The British government would not remove economic support measures too early, Chancellor Alistair Darling indicated on Monday. "I would rather be found guilty of removing the support slightly too late than slightly too early."
The euro slipped below 130 versus the yen for the first since since November 30. The European currency has been trending throughout the week.
The Japanese coalition government, led by Prime Minister Yukio Hatoyama, announced its first stimulus package worth 7.2 trillion yen on Tuesday to battle the threats of deflation and a strong currency in the world's second largest economy.
Elsewhere in the Eurozone, the French budget deficit increased sharply to EUR 134.8 billion during January to October from EUR 60.7 billion in the previous year, the state budget office said Tuesday. Government expenditure increased to EUR 303.2 billion from EUR 293.4 billion last year. Meanwhile, receipts fell to EUR 186.2 billion from EUR 239.8 billion.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.