Euro Plunge Sparks Market Speculation as Bitcoin Soars

The euro fell to a two-year low as eurozone business activity dipped. This prompted market speculation on ECB rate cuts while bitcoin approached $100,000. The euro weakened against major currencies, affected by geopolitical tensions and economic uncertainties. Meanwhile, the dollar and yen faced contrasting pressures due to economic policies and inflation.

The euro experienced a significant drop on Friday, plunging to its lowest level in two years following reports of declining business activity across the eurozone. This downturn has instigated market speculation about potential European Central Bank (ECB) rate cuts, whereas bitcoin approached the $100,000 mark.

The common European currency saw a dip of over 1%, reaching its lowest since November 2022. The release of data indicating a contraction in the bloc's services sector and further recession in manufacturing fueled market expectations for ECB rate cuts, with a notable possibility of a 50 basis point cut in December.

The euro's weakness extends against the Swiss franc and British pound, challenged by geopolitical unrest and economic uncertainties. The U.S. dollar strengthened amid prospects of inflation under President-elect Donald Trump. Meanwhile, the yen remained stable against the dollar, with speculation on Bank of Japan's policy response to currency movements.

(With inputs from agencies.)