Euro Hits Two-Month Low as Options Traders Add Downside Hedges

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

The common currency dropped by 0.2% to $1.1426, marking a third consecutive daily decline.

According to options gauges, sentiment among market participants is turning increasingly bearish, with positioning into year-end nearing levels last seen in mid-August.