Euro Falls to Two-Month Low as Options Traders Bet on Further Weakness

The euro has fallen to its lowest level in nearly two months against the US dollar, as options traders bet on further weakness following the Federal Reserve's latest interest rate increase.

The common currency declined by 0.2% to $1.1426 and is heading for a third daily drop.

Data from the Depository Trust & Clearing Corporation shows that positioning for euro weakness has accelerated, with around 60% of total notional value positioned for euro weakness since the Fed meeting.

ECB Governing Council member Joachim Nagel said officials may have to raise interest rates to restrain economic growth if energy prices persist.