The Euro continued to fall Monday, January 5th, from under the threshold of $ 1.20 to levels last seen nearly nine years, still affected by the words of President of the European Central Bank (ECB) on further measures to counter the risk of deflation in the Euro .
By 0700 GMT (0800 in Paris ), the single European currency was worth 1.1950 dollars, against 1.2002 dollars on Friday at 2200 GMT.
Earlier, the Euro , which comes completed its worst year since 2005 against the greenback, descended to 1.1868 dollar, a level at which it had not fallen since March 2006, before recovering. Thursday night, the single currency was still worth 1.2097 dollar.
The European currency also fell against the yen at 143.84 yen against 144.58 yen Friday.
The dollar depreciated against the Japanese currency to 120.37 yen against 120.46 yen Friday.
ECB Policy
In his interview with the German business daily Handelsblatt Friday Mario Draghi was reported that the ECB was preparing “technically early 2015 to change the scope, pace and character of the means to implement if it became necessary to respond to too long a period of inflation too low.”
He said the risk to the ECB fail to counter deflation was larger than it six months ago.
Such a program would be to inject liquidity into the financial system in the Euro to stimulate economic activity, but it also tends to dilute the value of the single currency, making it less attractive to investors.
The ECB could also buy bonds of countries in the Euro in serious financial trouble. These securities are considered risky assets.
Fears about Greece
“The reasons that prompted investors to sell the Euro this weekend are pretty clear: quantitative easing (“quantitative easing,” or QE) to and real concerns about the political situation in Greece “before the parliamentary elections held on January 25, said Sean Callow of Westpac Banking Corp. Bloomberg News.
The statements of anti-austerity Syriza radical left party, a favorite of the election will be particularly followed, as the market is concerned that his eventual rise to power would impact the negotiations with the European Union, the International Monetary Fund and the creditors of the country.
By 0700 GMT, the British pound rose against the single European currency at 78.19 pence per Euro , and fell against the dollar at 1.5283 dollar for a book.
The Swiss currency was stable against the Euro at 1.2016 Swiss francs to the Euro and but fell against the greenback at 1.0056 Swiss francs to the dollar.
(With AFP)
No comments:
Post a Comment