The dollar rallied versus European rival Friday after European Central Bank President Mario Draghi said policy makers are ready with unprecedented measures if inflation does not pick up.
It is feared that the euro zone will enter a dangerous deflationary spiral unless the ECB embarks on full-scale quantitative easing via asset purchases.
“If … our policy is not effective enough to achieve this, or further risks to the inflation outlook materialize, we would step up the pressure and broaden even more the channels through which we intervene, by altering accordingly the size, pace and composition of our purchases,” he said to bankers in Frankfurt.
Elsewhere, China’s central bank on Friday unexpectedly cut its key interest rates for the first time in more than two years in a bid to boost sagging growth momentum.
The People’s Bank of China reduced the one-year lending rate by 40 basis points to 5.6 percent. The one-year deposit rate was cut by 25 basis points to 2.75 percent.
The dollar jumped to near $1.24 versus the euro, not far from a 2-year peak of $1.2360 set earlier in November.
The buck also rose versus the sterling, improving to $1.56 from near $1.57.
Poltical risk was generated when the UK’s anti-EU party UKIP took a second parliamentary seat from Prime Minister David Cameron’s Conservatives.
Meanwhile, the dollar failed to build on this week’s 7-year peak of Y119 versus the yen. The pair was stuck below Y118 today.
Why visitors still use to read news papers when in this technological globe the whole thing is existing on net?|
Attractive section of content. I just stumbled upon your blog and
in accession capital to assert that I get actually enjoyed account your blog posts.
Anyway I will be subscribing to your feeds and even I achievement you access consistently quickly.
“I like the helpful information you supply to your articles. I will bookmark your weblog and test again right here regularly. I am fairly certain I’ll be told a lot of new stuff right here! Good luck for the next!”
Everyone loves what you guys tend to be up too. This sort of clever work and exposure! Keep up the excellent works guys I’ve added you guys to blogroll.|
Good post. I am going through some of these issues as well..
Hello, all is going fine here and ofcours every one is sharing data, that’s genuinely fine,
keep up writing.
Hi! Do you use Twitter? I’d like to follow you if that would
be ok. I’m definitely enjoying your blog and
look forward to new posts.
Thanks a lot for the blog article. Will read on…
Your whole life is actually directed according to your reader capacity and viewpoints of your
telepathic ability; on a daily basis you make decisions based on details you get psychically.
Get a mystic reading anytime, anywhere through phoning among the gifted psychics on Eager cost
complimentary today.