NEW YORK (Reuters) – The euro fell to its lowest in two-and-a-half years against the U.S. dollar on Monday as concerns about euro zone growth weighed on the single currency, while the greenback benefited from seasonal demand and uncertainty arising from the U.S.-China trade war.

German annual inflation unexpectedly slowed for the third consecutive month in September, data showed on Monday.

“The German CPI print this morning was a little bit on the disappointing side,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.

Germany’s leading economic institutes have also revised down their growth forecast for Europe’s biggest economy for this year, two sources with knowledge of their decision told Reuters on Monday.

The revisions, which feed into the government’s own output projections, reflect growing concerns that a slowdown in Germany driven by a recession in the export-dependent manufacturing sector could hamper the broader euro zone economy.

Demand for dollars heading into the last quarter of the year is also boosting the greenback.

“In Q4 we tend to see strong seasonal demand for the U.S. dollar, and given the fact that euro/dollar is the most frequently traded pair in the foreign exchange market, that certainly means that we could be seeing some further downside in the euro going forward,” Rai said.

The euro was last down 0.37% at $1.0898, after earlier falling to $1.0883, the lowest since May 2017.

Investors are also focused on the U.S.-China trade war, which is being blamed for slowing global growth.

President Donald Trump’s administration is considering delisting Chinese companies from U.S. stock exchanges, three sources briefed on the matter said on Friday, in what would be a radical escalation of U.S.-China trade tensions.

China warned on Monday of instability in international markets from any “decoupling” of China and the United States.

Washington and China are preparing for another round of trade talks scheduled for Oct. 10 and 11.

Uncertainty around the outcome of an impeachment inquiry into Trump may also provide safe-haven demand for the greenback.

Trump on Monday escalated his attacks against the lawmaker leading the impeachment inquiry against him, suggesting that Representative Adam Schiff be arrested for “treason.”

New Zealand’s dollar dropped as low as $0.6247 NZD=, its weakest since 2015, after a survey showed business sentiment weakening to an 11-1/2 year low in September, strengthening the case for a reduction in interest rates.

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