German investor sentiment unexpectedly worsened in March, the latest monthly survey by the Mannheim-based ZEW institute showed on Tuesday. The ZEW said its German economic expectations indicator, based on a survey of 311 analysts and institutional investors, fell to 63.4 from February's 69.8. The mid-range forecast in a Reuters poll of 45 economists last week predicted the indicator would rise to 71.0 , with predictions ranging from 60.0 to 80.0. The euro fell to its lows of the day against the dollar and Bund futures rose after the data was released. A separate ZEW gauge of current conditions for Germany rose more than expected, to -8.4 from February's -19.5. Economists polled by Reuters had expected a reading of -15.8. A measure of expectations for the euro zone fell to 61.1 from 66.0 the previous month.