Repurchase of assets by the ECB, the euro to the lowest in 11 years – Boursorama

The ECB reiterated Thursday its voluntarism on his imminent program of asset purchases. Ads that have plunged the euro against the dollar on Thursday night.

After falling yesterday in the wake of the meeting of the European Central Bank in Cyprus, the euro remained weak on Friday but maintained above the $ 1.10. Around 8 am in Paris, the single European currency was worth 1.1015 dollars against 1.1028 dollars on Thursday night in New York. Thursday, the euro has spent time below the 1.10 dollar. A first in 11 years and a half. The euro was still evolving around $ 1.12 earlier in the week.

“The euro tried to resume early in the day, after encouraging comments from the European Central Bank (ECB) on European economic prospects, “with forecasts for growth and inflation recorded for 2015 and 2016,” but then lost momentum, “summed Vasily Serebryakov, BNP Paribas. Indeed, the ECB president, “Mario Draghi made it clear that these good figures do not serve as a pretext to limit monetary easing” provided by the institution of Frankfurt, he added.

Starting next Monday, the central bank will buy 1.140 billion euros of assets, including sovereign debt, which aims to raise prices and to support the economy, but will have the collateral effect of diluting the single currency value.

Now, Mario Draghi “gave details, like the fact that the ECB is ready to buy bonds at negative rates,” which further clouded the outlook for the euro, said Vasily Serebryakov. In the same vein, the president of the ECB has expressed the determination of the ECB to continue its program after September 2016, date to which it is theoretically expected at 60 billion euros a month, if inflation does not restart until then.

“Many observers expect that the program will continue well after the date of September 2016 announced by Mario Draghi and suddenly the that this program will have the least impact is debate, “said Dennis de Jong UFX.com.

Meanwhile, the dollar remains encouraged” by signs of improvement in the economic recovery in the States UNite, and the prospect of higher US interest rates, “maintained near zero since 2008 by the Federal Reserve (Fed), noted experts from Western Union. Traders, for whom a rate hike will make the dollar more attractive, especially await the release Friday of a monthly report on employment in the United States, a key indicator to gauge the strength of the recovery in the world’s largest economy.

The European currency fell to a lesser extent against the Japanese currency to 132.50 yen against 132.63 yen Wednesday. The dollar rose against the Japanese currency to 120.14 yen against 119.70 yen yesterday.

Monetary Offensive ECB: kickoff Monday, March 9. (/ Graphics AFP)