The shared currency of the European Union was diving toward its largest monthly losses in four months on Wednesday as confidence grew about the prospects of the European Central Bank implementing additional economy-spurring stimulus policy when it next convenes in early June, according to Bloomberg.
More than half of the 39 analysts and economists surveyed by Bloomberg said the ECB will cut interest rates when its policy makers meet next Thursday in Frankfurt. Borrowing costs presently stand at 0.25 percent.
"Any rise in the euro will probably be quickly sold back down," associate for foreign-exchange trading at Bank Naohiro Nomoto with Tokyo-Mitsubishi UFJ Ltd. in New York told the news source on Wednesday. "It's hard to see right now to what extent ECB easing is already priced in."
Thus far in May, the 18-nation monetary unit has dropped roughly 1.7 percent against the world's reserve currency.
Yields on ECB-issued bonds also were losing value during the midweek trading session in advance of next week's policy meeting, according to Reuters. The rate cut is believed to be one of other measures the body is considering.
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