Euro touches 9-year low against US dollar

The euro is heading for a seventh monthly loss versus the dollar amid speculation European Central Bank President Mario Draghi will begin large-scale bond purchases known as quantitative easing to counter deflation. The single currency fell for a fourth day to hit a nine-year low of $1.1850. Also weighing on the euro is uncertainty regarding the upcoming Greek elections and fears of a “Grexit”.

The dollar is broadly firmer today ahead of today’s Fed minutes which may offer insight into the meaning of the central bank’s guidance that it will be “patient” when considering the timing of the first rate increase since 2006. After its Dec. 16-17 gathering, Chair Janet Yellen said the Fed was unlikely to raise borrowing costs at the next couple of meetings, in January and March.

The yen dropped from the strongest level in three weeks against the dollar as Asian stocks snapped a two-day rout, damping demand for safer assets.

The yen fell 0.5 percent to 118.96 per dollar at 2:15 p.m. in Tokyo after advancing to 118.06 yesterday, the strongest level since Dec. 17. Japan’s currency slid 0.4 percent to 141.32 per euro.

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