The euro hit its lowest price point in two years on Thursday after ECB President Mario Draghi worked to diffuse complaints about the way he's leading the bank.
The euro fell against 14 of its 16 major competitors after Draghi confirmed to reporters that his leadership methods, mentioning that the bank's program of buying bonds will last at least two years and will strive for better financial results by combining that strategy with targeted loans, Bloomberg reported. The euro fell by about 0.4 percent, falling to $1.2438. At one point, it fell below $1.24 entirely, which represents its lowest price point since August 2012.
In 2014, the euro has fallen nearly 10 percent against the dollar and is expected to reach its biggest annual drop in nine years. This is largely due to the ECB's reduction of interest rates, adoption of inexpensive and long-term loans for banks, and use of bonds to help boost a low inflation rate.
Valentin Marinov, the head of Citigroup's European Group of 10 currency strategy, noted that the ECB is "is clearly strengthening its commitment to do more if needed relative to market expectations. That's euro negative."
Draghi said that while disagreements are common in situations like these, ECB policymakers are ready to take action if necessary, and the ECB's staff would prepare for any changes, Reuters reported.
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