Euro Declines as Germany’s Schaeuble Says Region’s Rescue Fund Has Limits

The euro dropped against most of its major counterparts after Germany’s Finance Minister Wolfgang Schaeuble said his country opposes a “blank check” for the euro-area rescue fund to purchase bonds on the secondary market.

The dollar touched a record low versus the Swiss franc as a vote on U.S. House Speaker John Boehner’s plan to cut the deficit was postponed. The Australian dollar was the biggest winner versus the greenback among major currencies as consumer prices rose more than forecast. The 17-nation euro fell from a three-week high against dollar on renewed concern politicians are struggling to contain the region’s sovereign-debt crisis.

“The immediate crisis has passed, but it hasn’t fixed the underlying problems, and that’s why the market has been less than excited about holding euros,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp. “The Republicans and Democrats will find a compromise that cuts spending and is unlikely to lead to a debt downgrade, and then the focus will once again turn to Europe.”

The euro dropped 0.6 percent to $1.4430 at 10:17 a.m. in New York, from $1.4511 yesterday, after touching $1.4536, the highest level since July 5. The shared currency weakened 0.6 percent to 112.38 yen, from 113.01. The dollar traded at 77.85 yen after touching 77.57, the lowest level since March 17. The dollar was little changed versus the Swiss franc at 80.09 centimes after reaching a record low 79.96.