Euro falls as Draghi says asset-purchase program to last 2 years
By Bloomberg
The euro reversed an advance against the dollar as European Central Bank President Mario Draghi said the central bank’s program of buying some bonds will last at least two years.
The 18-nation shared currency tumbled against all but two of its 16 major counterparts. Draghi told reporters at a press conference in Frankfurt that policy makers are unanimous in their commitment to expand stimulus “should it become necessary to further address risks of too prolonged a period of low inflation.’’ Their measures will move the ECB’s balance sheet toward early-2012 levels, he said. It earlier decided to keep interest rates at record lows.
“The central bank is clearly strengthening commitment to do more if needed relative to market expectations,” said Valentin Marinov, London-based head of European Group of 10 currency strategy at Citigroup Inc., the world’s biggest foreign-exchange dealer. “That’s euro negative.”
The euro fell 0.5 percent to $1.2428 at 1:46 p.m. London time after earlier rising as much as 0.4 percent. It weakened 0.3 percent to 142.76 yen.
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