Euro Breaks Above $1.17 For First Time Since January

The euro traded above $1.17 Monday for the first time since Jan. 15. as the dollar weakened sharply against its industrialized rivals. Investors have pushed back expectations for the timing of what would be the Federal Reserve's first interest-rate hike since 2006, causing the dollar to decline. The buck has strengthened against its rivals on the expectation that the Fed would act in September, becoming the first major central bank to raise interest rates since the financial crisis. But support for this scenario has crumbled in recent weeks as global market turmoil and signs of slowing growth in China have weighed on the outlook for inflation. The euro is now down 3.7% against the dollar this year, having erased more than half of its year-to-date loss since Wednesday. It most recently traded at $1.1645, down 2.26% from its level late Friday in New York.