The euro fell to its lowest in a week after dovish comments from European Central Bank Governing Council member Olli Rehn.

EUR/USD drops as much as 0.3% to 1.1098, down a third day; Rehn said that easing inflation pressures and a deteriorating euro-zone economy support the case for an interest-rate cut this month.

Money markets now assign a 88% probability for a 25 basis-point move at the ECB's meeting; data showed euro-area inflation slowed below the central bank's 2% target for the first time since 2021, backing these wagers.

EUR/CHF down 0.2% to 0.9395; sell stops seen below 0.9370, a Europe-based trader says. Switzerland's manufacturing PMI rose in September; economists expected a fall.

The Bloomberg Dollar Spot Index rises 0.2% before halving the advance; Treasury two-year yield slips three basis points to 3.61%.

USD/JPY rallies by 0.6% to 144.53 before paring most of the advance; a summary of opinions from the Bank of Japan's September meeting reiterated that the bank has time to watch financial markets and the global economy before making its next policy move.

GBP/USD drops 0.4% to 1.3326; Bank of England policymaker Megan Greene said more interest rate cuts are likely as prices are "moving in the right direction".

Business chiefs are the most pessimistic they have been about Britain's economy since late 2022.

AUD/USD little changed at 0.6915 after rising 0.3%; retail sales gained 0.7% from the prior month, the most since January and surpassing the 0.4% increase estimated by economists in a Bloomberg survey.

Source: Bloomberg