The euro was on the defensive side Monday on dialogues between Greece and its European lenders over more funding aid and the European Central Bank’s stimulus pushed interest rates lower in the eurozone.
Investors have been ditching the shared currency as the central bank’s bond buying, launched last month, has been pulling eurozone bond yields down, to negative levels in several countries.
Also, Greece has been negotiating with the eurozone over its reform program before the meeting of finance ministers on April 24.
The common currency traded at $1.0615 from Friday’s $1.05670. Against the Japanese yen, the euro was at ¥127.30 from ¥126.915.
The shared currency might drop below parity versus the US dollar by the end 2015 “because of the ECB’s easing and low returns on capital in the eurozone,” said Shin Kadota, Chief FX Strategist at Barclays.
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