Euro suffers longest losing streak on record

The euro is also facing a slew of political risks. Photo / AP

The euro suffered its longest losing streak against the dollar since its inception in 1999 amid divergent policy expectations.

For a tenth consecutive trading session investors sold-off the single currency as they expect the European Central Bank will maintain its loose monetary policy stance to stoke eurozone inflation, while the US Federal Reserve is poised to raise interest rates next month.

It fell by as much as 0.6pc to $1.0569, its lowest level since December 2015.

ECB President Mario Draghi did little to help, when he implied stimulus is still needed. Speaking at a conference in Frankfurt, Draghi said the eurozone recovery will depend on "continued monetary support", adding that the ECB will "continue to act, as warranted".

The euro is also facing a slew of political risks including the constitutional referendum in Italy on December 4, as well as French and German elections next year.

US investment bank Goldman Sachs also maintained its call for euro-dollar parity by the end of 2017.

Meanwhile, the dollar, which has rallied since Donald Trump's surprise US presidential victory, powered to a fresh 13-and-a-half year high of 101.48 as US Treasury bond market resumed its sell-off and after Fed chair Janet Yellen signalled a rate hike was imminent.

The Fed is likely to rate rates "relatively soon", she told a Congressional committee on Thursday. Fed policymaker James Bullard also echoed that view yesterday.

"Markets are currently putting a high probability on a December move by the FOMC. I'm leaning towards supporting that," he told a conference in Frankfurt.

Dollar +7.5% vs the yen over the last 2 weeks, its best fortnightly performance since 1988, second best since end of Bretton Woods. pic.twitter.com/RHvXavgeKG

— Jamie McGeever (@ReutersJamie) November 18, 2016

The greenback also enjoyed its best two weeks against the Japanese yen since 1988, recording gains of 7pc, while on Wall Street, bulls were back in control, propelling the Nasdaq to a new record high.