Euro drops on interest rate worries

The euro was down almost 2 percent on the session Friday to $1.5042 to the shared currency on investor belief that the European Central Bank will probably not raise Eurozone interest rates anytime soon.

The euro also declined in relation to the Japanese yen, trading at ¥165.7253 to the shared currency at around 11 a.m. in New York, but the dollar gained on the yen to ¥110.1750.

The pound also dropped against the greenback as the dollar traded at $1.9171 to the UK currency in late morning trade in New York on new data showing that home repossessions were at their highest in 12 years in the first half of the year and that house prices are at a 2-year low there.

The South African rand was down to R7.7015 to the US dollar on news that while house prices are still growing there, growth is slowing as borrowing costs rise.

The Australian dollar dropped to 98.19 cents US to the Aussie on the suspicion that interest rates there will drop and on declines in gold and oil prices, while the New Zealand dollar was down to 70.38p to the kiwi after going as low as 69.83 cents US.

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