The euro weakened for a third day against the dollar, thelongest losing streak in almost a month, after data showed Europeanmanufacturing shrank and unemployment rose in Germany, adding toconcern the debt crisis will worsen.

The 17-nation currency dropped to a two-week low versus the yenon speculation European Central Bank President Mario Draghi willsignal tomorrow policy makers are moving closer to cutting interestrates to spur growth. The dollar erased gains against the yen afterprivate data showed U.S. companies added fewer workers thanforecast in April, boosting bets the Federal Reserve may keepaccommodative monetary policy in place longer.

“We have very bad purchasing-manager indexes and the first signthat Germany is cracking,” said Boris Schlossberg, director ofresearch at the online currency trader GFT Forex in New York. “Thegangrene has spread from the periphery to the core. If Draghi hintsthat there will be more easing to come, the euro may be vulnerableand fall to the $1.30 level.”