Euro at Almost Lowest in Four Months as Cyprus Seeks Rescue Plan

The euro traded at almost the lowest in four months versus the dollar as officials in Cyprus worked to produce a plan to secure financial aid and avoid the collapse of its banking system.

The 17-nation currency fell against most of its 16 major peers as the European Central Bank said it may cut off emergency funds to Cypriot banks after March 25 unless a plan to ensure bank solvency is in place. Standard & Poor’s cut Cyprus’s long-term sovereign rating by one level. The euro declined earlier today after a report showed regional services and manufacturing output contracted in March. The yen gained even as the Bank of Japan’s governor vowed to pursue bold stimulus.