The euro held up against the US dollar on Tuesday despite hints from the European Central Bank that it was preparing moves to fight deflation.
The euro currency. (AFP/Philippe Huguen)
NEW YORK: The euro held up against the US dollar on Tuesday despite hints from the European Central Bank (ECB) that it was preparing moves to fight deflation.
At 2100 GMT, the euro was at $1.3825, barely down from $1.3839 late Monday.
The euro also slipped on the Japanese currency, to 141.36 yen from 141.49 yen.
The dollar-yen rate was flat at 102.25 yen to the greenback.
ECB president Mario Draghi said Tuesday that the European central bank would do what is needed to maintain price stability.
“If any downside risks to (our inflation) scenario appear, we stand ready to take additional monetary policy measures that ensure our mandate is fulfilled.”
And ECB Governing Council member Josef Makuch, the Slovak central bank chief, echoed the sentiment, possibly pointing to a quantitative easing program to hold rates low, or even, some speculate, taking interest rates negative.
ECB policy makers “are ready to adopt nonstandard measures to prevent slipping into a deflationary environment,” Makuch said in Bratislava.
“The ECB has many measures on hand, including putting more money into circulation. Their use depends on the situation. If the circumstances require more liquidity, then I have no reason not to support it,” he said.
The British pound rose to $1.6528 from $1.6498, while the dollar rose to 0.8826 Swiss franc from 0.8808 franc.
Source AFP
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