Euro On A Decrease Versus Yen After Draghi Turns Down Germany’s Call for Rate Hike
Oct, 13th 10:25
Euro extended losses versus its Japanese counterpart to a second trading session on Friday after European Central Bank President Mario Draghi poured cold water on German hopes over an era of low or negative rates nearing its end.
The euro lost about 0.2 percent to trade at 132.55 yen in European trading session on Friday, paring a weekly gain. ECB President Mario Draghi on Thursday reiterated that the central bank’s asset buying program would continue until policymakers see a sustained improvement in the outlook for inflation, which has still been below the ECB target of around 2 percent.
In his speech at an event in Washington, where he is due to attend the G20 meeting, Draghi also added that he planned to maintain the current ultra-low rates “well past” the end of its asset purchases in December. Draghi’s comments battled back German calls to exit from years of easy money in the euro zone.
Speaking earlier in Washington, ECB chief economist and policy dove Peter Praet warned that inflation data has not shown any upbeat move, suggesting that monetary policy needed to remain easy.
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