The dollar fell to near a record low against the euro after a report showed inflation accelerated in the euro region, giving the European Central Bank more reason to keep rates unchanged while the Federal Reserve lowers borrowing costs. The dollar headed for its biggest quarterly loss since 2004 after a preliminary report from the EU showed consumer-price growth quickened to the fastest pace in almost 16 years in March. ECB policy maker Erkki Liikanen said today he sees growing inflation threats. The pound fell to a record against the euro, poised for its largest-ever quarterly decline, after industry data showed U.K. house prices dropped for a sixth month.

Full story: bloomberg.com