Euro Falls Towards Two-Month Low After EU Confronts Italy Over Budget

Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, Jan. 21, 2016. Jason Lee/Illustration/Reuters

LONDON—The euro fell towards a two-month low on Oct. 19, after the European Union criticized Italy’s spending plans, raising fresh concern over conflict within the common currency zone.

Political wrangling over the budget in heavily indebted Italy has seen the euro weaken over 1 percent versus the dollar this week.