PRODUCT PROFILE

Latest Dublin Prices

NAME
LATEST
CHANGE
Aer Lingus 2.02 0.03 more
BoI 0.31 -0.01 more
CRH 19.35 0.00 more
Glanbia 12.74 0.06 more
Greencore 0.64 -0.02 more
Ind. News 0.12 0.01 more
Ryanair 9.58 -0.03 more

 

Euro falls after Draghi's comments

Thursday, August 07 15:58:20

The euro weakened today, undermined by the ECB's saying it would leave interest rates unchanged at record lows and that the fragile economic recovery will keep the loose policy in place for an extended period.

The ECB's decision was not unexpected by the market, and it heightened the contrast in monetary policy, with the euro zone moving toward easing and the United States moving toward tightening on an improving economic outlook.

The positive sentiment on the U.S. economy was helped by better-than-expected weekly U.S. jobless claims.

Since May, the euro has dropped 4.6 percent against the dollar, hitting a 9-month low of $1.3333 on Wednesday.

"Nothing really has changed here with the ECB and since that's the case, we're simply consolidating the prices," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York.

"The bigger risk in the market is the downside for the euro. I think it bears out Draghi's point in that the market already accepts (Europe's) economic recovery is fragile, moderate and uneven," he added, referring to comments from ECB President Mario Draghi earlier on Thursday.

Following the bank's monetary policy meeting, Draghi said the Ukraine crisis has added to risks of the euro zone's weak and uneven economic recovery.

In mid-morning New York trade, the euro touched a session low at $1.3336, off 0.30 percent on the day.

The greenback rebounded from Wednesday's 1-1/2 week low against the Japanese yen, which sagged on news that Japan's public pension fund plans to increase allocation to the domestic stock market. The dollar rose 0.24 percent to 102.34 yen.

After a bullish month of trading that raised expectations of a longer-lasting rally, the greenback was just below 11-month highs against a trade-weighted basket of major currencies.

For more visit: www.businessworld.ie