June 7, 2017 / 11:21 AM / 2 months ago

Euro hits four-day low after report says ECB will cut inflation forecasts

FILE PHOTO: Photo illustration of Euro banknotes at a bank in Seoul, South Korea, June 18, 2012.Lee Jae-Won/Illustration/File Photo

LONDON (Reuters) - The euro fell to a four-day low against the dollar on Wednesday after Bloomberg reported the European Central Bank was preparing to cut its inflation forecasts at this week's policy meeting due to weaker energy prices.

Having traded close to six-month highs in European morning trade, the shared currency fell to $1.1205 after the report was published and was last down over half a percent on the day at $1.1211.

Germany's 10-year government bond yield hit a six-week low of 0.25 percent, down 1 basis point on the day.

European shares moved higher as the euro weakened, with the broader euro zone equity index rising to the day's high, up more than 0.5 percent, and the German blue chip index turning into positive territory.

Reporting by Francesco Canepa, Abhinav Ramnarayan, Danilo Masoni, Ritvik Carvalho and Patrick Graham

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