Europe's common currency fell as policy makers cut the key rate by half a percentage point to 3.25 percent, the lowest level since December 2006. The Bank of England unexpectedly cut its benchmark rate by 1.5 percentage points to 3 percent today.
The euro fell to $1.2806 as of 12:46 p.m. in London, from $1.2954 yesterday. The single currency has weakened about 19 percent against the dollar since climbing to a record of $1.6038 on July 15. It was at 125.54 yen, from 126.89.
A government report today showed manufacturing orders in Germany, the euro region's biggest economy, dropped by a record 8 percent in September, led by a slump in foreign demand for factory machinery. The European Commission on Nov. 3 said the region may be in a recession and said the economy will stagnate next year.
The euro-region economy contracted 0.3 percent in the three months through September and may shrink by the same amount in the fourth quarter, according to a Bloomberg News survey.
The yen and the dollar in October posted their largest monthly gains versus the euro since the 15-nation currency's debut in 1999 as signs of a global recession led investors to seek safety in the Japanese and U.S. currencies.