Euro Drops to Lowest Level Since Jan. 4 Debut

So much for the strong euro.

The new European currency fell Wednesday to its lowest level since its launch Jan. 4, sliding to $1.143 from $1.155 on Tuesday. The euro is down 3.5% against the dollar since the currency made its debut Jan. 4 at $1.184.

Analysts said traders are betting that the European economy, already showing signs of slowing, will require an interest rate cut by the European Central Bank by midyear to avoid sliding toward recession. A weak economy, along with lower interest rates, often means downward pressure on a currency’s value as the economy attracts less investment.

While Europe weakens, the U.S. economy’s strength is bolstering the dollar, partly on the assumption that U.S. interest rates will remain level or even move higher.