AFP, New York :
The euro slipped against the dollar Thursday after the European Central Bank signaled further stimulus could soon be on the way for the eurozone.
In volatile trade, the euro tumbled to a two-week low of $1.0778, before regaining its footing at $1.0878 around 2200 GMT. Nevertheless, that was weaker than the $1.0890 trade at the same time Wednesday.
The shared currency dived following the ECB’s announcement after a monetary policy meeting that it would hold the current easy-money course, as expected, and remarks by ECB chief Mario Draghi.
Draghi, in the post-meeting news conference, suggested the potential for additional stimulus to help the struggling eurozone.
The ECB needed “to review and possibly reconsider our monetary policy stance at our next meeting in early March,” he said.
“The biggest story in the foreign exchange market today was ECB President Mario Draghi’s surprisingly dovish comments on monetary policy,” said Kathy Lien of BK Asset Management in a note to clients.
“Draghi could not be any clearer in suggesting that they may increase stimulus at the next meeting (there is no meeting in February) and for this reason we believe the euro should trade lower,” Lien said.
The dollar was mixed overall, while the yen fell against the greenback and euro.
In Russia, the ruble plummeted to new record lows against the dollar, tumbling at one point by more than 4.0 percent.
The ruble has been battered over the past 18 months by low energy prices and Western sanctions over Ukraine.
The Kremlin insisted the ruble’s plunge was “not a collapse” and that authorities would be able to stop the slide.
“The exchange rate is really changing, the rate is volatile, but it is far from being a collapse,” spokesman Dmitry Peskov was quoted as saying by Russian agency Interfax.
The euro slipped against the dollar Thursday after the European Central Bank signaled further stimulus could soon be on the way for the eurozone.
In volatile trade, the euro tumbled to a two-week low of $1.0778, before regaining its footing at $1.0878 around 2200 GMT. Nevertheless, that was weaker than the $1.0890 trade at the same time Wednesday.
The shared currency dived following the ECB’s announcement after a monetary policy meeting that it would hold the current easy-money course, as expected, and remarks by ECB chief Mario Draghi.
Draghi, in the post-meeting news conference, suggested the potential for additional stimulus to help the struggling eurozone.
The ECB needed “to review and possibly reconsider our monetary policy stance at our next meeting in early March,” he said.
“The biggest story in the foreign exchange market today was ECB President Mario Draghi’s surprisingly dovish comments on monetary policy,” said Kathy Lien of BK Asset Management in a note to clients.
“Draghi could not be any clearer in suggesting that they may increase stimulus at the next meeting (there is no meeting in February) and for this reason we believe the euro should trade lower,” Lien said.
The dollar was mixed overall, while the yen fell against the greenback and euro.
In Russia, the ruble plummeted to new record lows against the dollar, tumbling at one point by more than 4.0 percent.
The ruble has been battered over the past 18 months by low energy prices and Western sanctions over Ukraine.
The Kremlin insisted the ruble’s plunge was “not a collapse” and that authorities would be able to stop the slide.
“The exchange rate is really changing, the rate is volatile, but it is far from being a collapse,” spokesman Dmitry Peskov was quoted as saying by Russian agency Interfax.
