Euro to the lowest level in two months

The euro fell to a two-month low against the dollar on Wednesday, on weak economic data and speculation that the ECB could open the door to a major easing of monetary policy starting next week.

The unified currency fell 0.1 percent to $1.1137, after earlier reaching $1.1127, the lowest level since May 30.

The euro hit a two-year low of $ 1.1105 in May.

The euro has lost 2 percent of its value since the beginning of the month as investors took into account the possibility of a larger decline in the cost of borrowing in the euro zone below zero. The stronger dollar generally contributed to the loss of the euro.

The dollar gained after Washington reached an agreement to lift government borrowing, which analysts say could limit the Federal Reserve (U.S. Central Bank) to cut interest rates. 

The dollar steadied against a basket of currencies at 97.704 after rising to a 5-week high of 97.76 earlier, following gains of 0.5 percent the day before.

The sterling pound gained slightly from its low levels after Boris Johnson won the race for Britain's next prime minister and investors focused on Britain's possible withdrawal from the EU without a deal.

In the latest trading, sterling rose 0.3 percent to $ 1.2479, but did not move far from the lowest level in 27 months at $ 1.2382, recorded last week.

The British currency rose 0.4 percent against the euro, to 89.290 pence.