Euro weakens against the dollar as ECB's Alvaro Santos Pereira signals contained inflation, cooling expectations for further monetary tightening.
ECB official's comment that inflation is not spreading reduces rate hike expectations, which is bearish for the euro.
The Euro faces downward pressure against the U.S. Dollar following comments from ECB policymaker Alvaro Santos Pereira. His remarks suggesting that inflation is not spreading have dampened market expectations for aggressive interest rate hikes in the Eurozone.
The Euro declined because the ECB official's comments suggested that inflation is not spreading, which led investors to lower their expectations for future interest rate hikes.