Investing.com - The euro fell to the lowest level in seven months against the dollar on Monday amid heightened expectations that the European Central Bank will scale up its monetary easing program next month.
EUR/USD hit lows of 1.0600, the weakest since April 15 and was last at 1.0620.
The single currency remained under heavy selling pressure after ECB head Mario Draghi gave the clearest signal yet that the bank may unveil fresh stimulus measures at its December meeting.
The ECB is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing, Draghi said on Friday.
The comments came during a conference in Frankfurt and underlined the diverging monetary policy expectations between the Federal Reserve and the ECB.
The euro also hit fresh seven-month lows against the yen on Monday, with EUR/JPY falling to 130.57.
The dollar gained ground against the yen, with USD/JPY rising 0.29% to 123.18.
Trading volumes remain thin, with markets in Japan closed for holidays.
Demand for the dollar continued to be underpinned by expectations that the Fed is on track to raise interest rates next month.
New York Fed President William Dudley said Friday that there is a "strong case" for hiking rates at the central bank’s next meeting in December as long as economic data continues to remain solid.
Higher U.S. interest rates would make the dollar more attractive to yield-seeking investors.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, hit seven-month highs of 100.04 on Monday and was last at 99.91.