EUR fell on the European market on Friday against most of the world’s currencies, deepening losses for a second consecutive day against the USD, hitting a three month low after the European Central Bank extended the eurozone stimulus package for another nine months, European interest during 2018.
EUR fell against the USD by more than 0.2% as of 07:38 GMT, trading at 1.1622 USD, the opening price of 1.1649 USD and the highest at 1.1657 USD, and the lowest at 1.1615 USD since July 26.
EUR ended yesterday’s trading down 1.8% against the USD, its first loss in three days and the biggest daily loss since June 24, 2016, under pressure to extend the eurozone monetary stimulus program and comments by European Central Bank Governor Mario Draghi.
European Central Bank kept interest rates unchanged at record low levels and extended the stimulus package to another nine months until September 2018. The bank said it would start cutting the monthly program by half to 30 billion EUR from Next January, the bank left the list possibilities to extend the program for new time periods until the target inflation was achieved.
European Central Bank Governor Mario Draghi said there was still a need for enough continued monetary stimulus, especially as the inflation path showed no sign of a sustained upward trend.
Draghi pointed out that the monetary policy pursued by the Central Bank aims to ensure the stability of inflation on a sustainable basis close to the target of 2%, and again expressed patience and determination to achieve the objectives of the bank, and said that monetary policy decisions during the meeting came unanimously.
The financial markets had expected to extend the program by another 9 months and cut the program to 40 billion EUR a month with the closure of the extension after that, but the Bank’s decisions left the door open to extending the implementation of the program for new periods of time, which reduced the possibility of raising European interest rates in 2018, The prospects have been raised to 2019