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| European Central Bank (Photo credit: kumbarov) |
The single currency declined fell versus all except two of its 16 major counterparts as ECB policy makers prepared to meet today after President Mario Draghi said yesterday that Europe’s debt crisis is starting to hurt Germany. Exports in Europe’s largest economy dropped the most in nine months in September, a report showed.
The ECB story “could potentially be the catalyst this morning,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “Draghi’s comments may have encouraged speculation that the ECB may present a more dovish stance at today’s meeting and open the door for further monetary easing, which would likely weigh upon the euro.”
The euro dropped 0.3 percent to $1.2729 at 10:13 a.m. London time after dropping to $1.2722, the lowest level since Sept. 7. The common currency fell 0.4 percent to 101.72 yen. The Japanese currency was little changed at 79.93 per dollar.
The ECB is satisfied with the tranquilizing effect created by its plan to purchase government bonds, Market News International reported, citing unidentified European Union and central-bank officials.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
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