Euro Drops Against the Dollar

Thanks to political uncertainty in Spain

The euro fell toward a one-week low versus the dollar as European Central Bank policy makers prepare to meet tomorrow amid political and banking turmoil that threatens to deepen the debt crisis gripping the currency bloc.

The 17-nation euro slid against most of its 16 major peers as Spanish Prime Minister Mariano Rajoy faced opposition calls to resign amid contested reports of corruption in his party. Italy'sBanca Monte dei Paschi di Siena SpA may disclose today the size of losses it hid in 2008 and 2009 using derivatives. The yen weakened to 94 per dollar for the first time since May 2010 on speculation Japan's government will select a new central bank chief committed to boosting monetary easing.