The European Central Bank was believed to be preparing to intervene to prompt economic development, which tends to water down the value of the euro. The euro fell against all 16 of its major counterparts. One trader told Reuters that President Mario Draghi with the European Central Bank was preparing to consult Germany regarding what is the equivalent of quantitative easing.
"There's talk Draghi is looking for German support for ending sterilization," the trader told Reuters on Tuesday. "For me, that's effectively QE."
The 17-nation monetary unit slipped roughly 0.1 percent against the greenback after touching its lowest rate since the end of November of last year on Monday.
The yield on bunds issued by Germany dropped to their lowest rate in about six months on Tuesday as the ECB prepared to intervene, according to Reuters. Germany hosts the biggest economy in the euro zone.
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