The
euro fell below $1.10 for the first time in more than 11 years after
European Central Bank President Mario Draghi unveiled details of
sovereign-debt purchases designed to increase inflation and restore
economic growth.
The
shared currency dropped for a sixth day, the longest slide in more than
a year, as Draghi said the ECB will start buying bonds next week and
include debt with negative yields. The dollar rallied to the highest in
more than 10 years as investors awaited a jobs report Friday that may
bolster the case for the Federal Reserve to raise interest rates for the
first time since 2006.
The
euro sank as much as 0.8 percent to $1.0988 before trading at $1.1030
at 5 p.m. in New York, down 0.4 percent. It last fell below $1.10 in
September 2003. The 19-nation currency was little changed at 132.50 yen.
The
Bloomberg Dollar Spot Index, which tracks the greenback against 10
major counterparts, gained 0.5 percent to 1,185.15, its highest close in
data going back to 2004.
The
ECB will begin buying bonds on March 9, Draghi told reporters in
Nicosia, Cyprus, after a policy meeting. He confirmed that purchases
will amount to 60 billion euros ($66 billion) each month and run through
September 2016.
Source: Bloomberg
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