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Euro down one percent on Draghi comments
The euro more than 1 per cent lower on prospects of further monetary loosening in the Eurozone next month. This comes after European Central Bank President Mario Draghi spoke in front of the European Parliament in Brussels on Monday. He indicated the ECB would “not hesitate to act” if recent market turmoil or falling energy costs were destabilizing prices.
Mr Draghi’s remarks weakened the single currency, pushing it down to $1.1125.
The euro has advanced more than 7 per cent against the dollar since the ECB’s December policy meeting when the market was underwhelmed by Mr Draghi’s package of monetary expansion.
The ECB meets again on March 10, but foreign exchange analysts believe factors beyond the central bank’s remit represent the best chance of halting the rise of the euro, which is perceived as damaging eurozone competitiveness.
Attention is focusing on the gathering of G20 finance ministers next week and whether it can cobble together co-ordinated policy action across central banks to calm market anxiety.
The yen is weak, which pushed up USD/JPY from 114.30 to 114.87.
Oil prices gained over 4 per cent on news that Saudi Arabia’s oil minister Ali al-Naimi is going to meet his Russian counterpart today and also possibly with Qatari and Venezuelan oil ministers. The meeting that will take place in Doha, raises expectations that some OPEC members may push for action to boost oil prices.
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