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The value of the euro Thursday dropped to its lowest level since September 2003. Dealers reacted to statements by ECB President Mario Draghi, which stated, inter alia that the European Central Bank Monday begins with the end last month announced buyback of government bonds.
The euro reached around 15.00 an interim low of $ 1.1007, compared with over 1, $ 11 at the beginning of the press conference Draghi half an hour earlier. The euro was early September 2003 to last less than $ 1.10 worth.
The value of the euro is under pressure for months. In May last year, the European currency still peaked at around $ 1.40. The decrease is primarily due to the variety of monetary policy in the euro area and the United States.
Federal Reserve
While the ECB will take additional measures to stimulate the ailing economy and low inflation, the US Federal Reserve has just cutting back aid policy. This results expected later this year to the first rate hike since the outbreak of the financial crisis.
The cheaper euro can really help the euro countries, because their products are attractive markets where is settled in other currencies. Moreover, the import is expensive, so the very low inflation may be somewhat stimulated.
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