Currencies
On Monday, the euro posted its biggest decline against the dollar in more than three months on fresh signs the European economy is struggling to grow, widening the gap between the pace of expansion in the euro region and the U.S. In the past year, the dollar has fallen against the euro as the U.S. has failed to attract the $1.5 billion a day needed to offset the gap in its current account, the broadest measure of trade in goods and services. (Germany and Japan, by contrast, have current account surpluses.) The euro's 16.4 percent increase against the dollar in the past year has hurt exporters including many luxury goods makers such as Gucci Group NV. The company said first quarter profits tumbled 97 percent as the currency's appreciation reduced the value of income from overseas when translated into euros.

Some traders bought the dollar against the euro on speculation U.S. corporate profits will rebound in the second half. People are reallocating out of bonds and into equities, which means that they are going to be selling euros and buying dollars in order to buy U.S. stocks.

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