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The euro dived to a 22-month low versus the US dollar Thursday after European Central Bank President Mario Draghi spoke on potential further easing, igniting selling.
Draghi reiterated the central bank could employ additional unconventional policy measures if the inflation target was under threat.
The shared currency traded at $1.2749, down from Wednesday’s $1.2780 in New York. It also fell $1.2697 in early trading, the weakest since November 2012.
“We can expect Mr. Draghi will likely take various (easing) steps over a prolonged period, making investors reluctant to actively buy the common currency, but they still need to keep the currency in their portfolios,” said Marito Ueda, Director at FX Prime by GMO.
