LONDON, Dec 1: The euro slipped further against the dollar late Monday as the market bet that the European Central Bank will cut eurozone interest rates sharply later this week.

Dealers said the ECB is expected to lower rates by at least 0.50 percentage points and possibly more after eurozone inflation tumbled to 2.1 per cent in November, within sight of the ECB’s less than 2.0 per cent target.

The fall should allow the ECB room to go further in the future in the face of a dramatic economic slowdown.

In late London trade on Monday, the euro changed hands at $1.2621 against $1.2695 late on Friday, at 118.39 yen (121.19), 0.8499 pounds (0.8255) and 1.5258 Swiss francs (1.5408).—AFP