LONDON, Aug 25 Reuters The euro fell to its lowest level since midJune on Friday, knocked down by growing expectations that the European Central Bank could soon pause rate hikes while the dollar was broadly robust ahead of a speech by Federal Reserve Chair Jerome Powell.
ECB policymakers are increasingly worried about weakening growth prospects and, while the debate is still open, momentum for a pause in its rate hikes is building, Reuters reported, citing eight sources with direct knowledge of the discussion.
The euro fell to a fresh low following the release of that report, hitting its lowest since midJune at around 1.0766 . It was last down 0.3 on the day.
The dollar index , which measures the U.S. currency against six others, rose to 104.25, the highest since June 7. The index is up more than 2 in August and set to snap its twomonth losing streak.
Powell speaks at the Jackson Hole Economic Policy Symposium at 1405 GMT, while ECB chief Christine Lagarde speaks at the same gathering later in the day.
Powell will maintain that the Fed will keep a hike in play, while markets are less convinced about further ECB tightening, said Jeremy Stretch, head of G10 FX strategy at CIBC in London.
It still feels like the path of least resilience is for a stronger dollar.
Both the euro and sterling have been hit this week by weak business activity data that has prompted investors to scale back bets on further rate hikes in the euro area and Britain.
Sterling touched its…