The common currency of the European Union fell toward its largest weekly losses in seven months against the U.S. dollar on Friday in the aftermath of remarks by President Mario Draghi with the European Central Bank, Bloomberg reports.
Central bank officials convened on Thursday in Brussels to discuss the budget for 2014 through 2020.
“The ECB had quite an impact on the euro-dollar and the positive Chinese data we have had has helped shares,” economist Aline Schuiling with ABN Amro told the news source on Friday. “Draghi signaled quite clearly yesterday that with the rise in the euro, the risks to price stability are to the downside. We expect the dollar to continue to strengthen, but if that reverses then markets would price in a rate cut.”
Though the monetary unit was pushing toward weekly losses, thus far this year the euro has gained about 2.3 percent against the world’s reserve currency. Many officials believe the region has rounded the corner after three-plus years of coping with the sovereign debt crisis.
Interest rates will remain at a record low level of 0.75 percent as discussed during the Thursday meeting, according to Reuters.
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