The dollar slumped to a more than three-year low against the euro on Friday, January 12,as the common currency extended its gains on hopes that European Central Bank policymakers are preparing to reduce their vast monetary stimulus programme.
The dollar index , which measures the greenback against six major currencies, fell to its lowest since Sept. 20 at 91.689.
The greenback was also under pressure after data showed producer prices in the United States fell for the first time in nearly 1-1/2 years in December amid declining costs for services.
Weak inflation at the producer level could add to concerns that the factors restraining inflation could become more persistent and result in the U.S. Federal Reserve being more cautious about raising interest rates this year.
Meanwhile, the European Single Currency, euro was up 0.9 percent to $1.2139, on Friday, January 12, on pace for its biggest single-day percentage gain against the greenback in about two months.
