The euro saw weakness against other majors as more discouraging economic reports fueled speculation of forthcoming interest rate cuts by the European Central Bank. The currency hit near-term lows against the dollar, sterling, yen and franc.
The euro plunged nearly 3 cents off its overnight highs versus the dollar and moved at 1.2672 in the late morning, falling to a four-day low. Last month, the euro reached a two-year low of 1.2328 versus its U.S. rival.
The European currency dropped to a 16-day low of 0.8249 versus the British pound. The drop took the euro further away from the record 0.8662 reached earlier this month.
The euro fell to a four-day low of 120.54 versus the Japanese yen. The drop took the currency below near-term support. The euro fell to 1.5433 against the Swiss franc.
A flash estimate released by the Eurostat on Friday said annual inflation in 15 nation economy eased to 2.1% in November from 3.2% in October. Inflation slowed more than the expected rate of 2.4%. The final data for November is scheduled to be released on December 17.
Separate data showed the jobless rate rose to 7.7% in October from September's upwardly revised 7.6%. Economists were expecting a rate of 7.6% for October.
French President President Nicolas Sarkozy confirmed Friday that he will detail a Eur 19 billion stimulus package for key industries next Thursday. The stimulus package, which would be equivalent to 1% of the country's gross domestic product, is the latest in a string of efforts aimed at reviving the slumping French economy.
Meanwhile, the statistical office INSEE showed that French domestic industrial producer prices declined 0.9% month-on-month in October after falling 0.7% in September and 0.2% in August. Economists had predicted a 0.4% decline for October. In August, producer prices had recorded its first monthly decline since December 2006.
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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.