TOKYO -- The euro has been faltering against the dollar since the beginning of this year, trading in the upper $1.37 range. With the European Central Bank's governing council meeting scheduled for March 6, speculation about additional monetary easing is turning into a source of selling pressure. There is a rumor that negative interest rates could be introduced, but it is not going to be an easy job in view of the precedents.
The euro was bought at one time on Monday in the foreign markets on the back of improvements in Germany's Ifo Business Climate Index in February. However, the euro later lost steam following remarks by Bank of Italy Gov. Ignazio Visco, who said that his bank was ready to consider introducing negative interest rates on deposits if necessary.