AFP, Singapore :
The euro struggled in Asian trade Monday after being hammered late last week in response to comments from the European Central Bank (ECB) chief hinting at further stimulus measures to fend off deflation.
The single currency was at 146.19 yen by afternoon, slightly up from the 145.91 yen recorded in late London trade Friday but well off the 147.81 yen in Asia earlier that day.
It also tumbled to $1.2398 from $1.2405 in London and was sharply down from $1.2553 Friday in Tokyo. The dollar bought 117.91 yen against 117.63 yen late Friday.
“Inflation remains the key variable for the euro,” banking group ANZ said in a note, adding that “there is little expectation in a change to deflationary pressures that will cap the topside” of the currency.
ECB head Mario Draghi on Friday said at a banking congress that the central bank “will use all means available to us, within our mandate, to return inflation towards our objective-and without any undue delay”.
Among the measures being considered are the large-scale purchase of government bonds-known as quantitative easing-similar to that undertaken by the Bank of Japan and recently wound down by the US Federal Reserve.
The euro struggled in Asian trade Monday after being hammered late last week in response to comments from the European Central Bank (ECB) chief hinting at further stimulus measures to fend off deflation.
The single currency was at 146.19 yen by afternoon, slightly up from the 145.91 yen recorded in late London trade Friday but well off the 147.81 yen in Asia earlier that day.
It also tumbled to $1.2398 from $1.2405 in London and was sharply down from $1.2553 Friday in Tokyo. The dollar bought 117.91 yen against 117.63 yen late Friday.
“Inflation remains the key variable for the euro,” banking group ANZ said in a note, adding that “there is little expectation in a change to deflationary pressures that will cap the topside” of the currency.
ECB head Mario Draghi on Friday said at a banking congress that the central bank “will use all means available to us, within our mandate, to return inflation towards our objective-and without any undue delay”.
Among the measures being considered are the large-scale purchase of government bonds-known as quantitative easing-similar to that undertaken by the Bank of Japan and recently wound down by the US Federal Reserve.
