Euro sharpens decline to four-week trough

Euro fell in European trade on Monday against dollar for third straight session, marking four-week lows on higher alternative demand on the greenback and amid concerns of divergent monetary policies between Europe and US.

EUR/USD fell 0.2% to 1.1706, the lowest since August 23, after closing Friday down 0.3% on yesterday, the second loss in a row on hopes for a stronger growth in the third quarter this year. 

The dollar index rose 0.2% on Monday, the third profit in a row, marking month highs at 93.40 against a basket of major rivals.

The gains come amid increased investor interest on the greenback following increased bets on policy tightening in the US before yearend. 

Euro lost 0.75% last week, the second weekly loss in a row on renewed concerns over divergent US-Europe policies.

The concerns intensified after the ECB asserted recently on carrying out its current stimulus policies unchanged until the end of next year's first quarter at least.