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Tuesday, May 19, 2015

Euro Drops After ECB Official Pledges to Speed Up Bond Purchases

Posted by PT KONTAK PERKASA FUTURES BALIKPAPAN On 5:56 PM No comments


The euro tumbled the most in two months after a European Central Bank official said policy makers plan to boost bond purchases before an anticipated mid-year lull.
The single currency slumped after Executive Board member Benoit Coeure said the ECB will increase purchases under its quantitative-easing program from 60 billion euros ($67 billion) in May and June, ahead of a drop-off in market liquidity. The euro extended losses versus the dollar after a report showed residential construction in the U.S. surged in April to the highest in more than seven years, supporting the Federal Reserve’s move toward raising interest rates.
The euro dropped 1.6 percent to $1.1138 as of 1:03 p.m. in New York, the most since March 19. It slipped 1 percent to 134.36 yen. The dollar rose 0.5 percent to 120.64 yen.
Source: Bloomberg

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