Economics

Euro falls to 12-year low after European Central Bank's meeting

6 march 2015 | 13:15

ECB to buy eurozone countries' government bonds of 60 billion euro per month to curb deflation and stimulate economic growth.

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Euro depreciates because of the ECB decision
kommersant.ua
According to the auction data, euro fell to a September 2003 minimum after the meeting of the European Central Bank (ECB) regarding the beginning of quantitative easing (QE) program.

Euro was worth $ 1.1028 compared with $ 1.1035 the previous day. At the same time euro fell to .0990/euro during the day, which is a minimum since September 2003.

Reportedly, euro fell because of the news from the ECB. The regulator preserved the benchmark interest rate at a record low 0.05%. In addition, the head of the ECB, Mario Draghi announced about the beginning of quantitative easing program since March 9.

Read more: Research: dollar to cost more than euro by 2018

ECB to buy eurozone countries' government bonds of 60 billion euro per month to curb deflation and stimulate economic growth. The program will be conducted until September 2016. However, the timing may be increased to achieve sustainable inflation rate close to 2%.

Earlier, on March 2, the value of the US dollar increased to 11-year high. According to Goldman Sachs, the value of the dollar and euro can be equal by January 2017. 

Source: RIA-NOVOSTI

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