- POSTED: 09 May 2014 06:25
The euro weakened on Thursday after European Central Bank chief Mario Draghi said the bank was prepared to further ease monetary conditions next month if the economy needed it.
NEW YORK: The euro weakened Thursday after European Central Bank chief Mario Draghi said the bank was prepared to further ease monetary conditions next month if the economy needed it.
As expected the ECB decided Thursday to hold off on any action for the moment, despite facing a very low rate of inflation and what many say is a very overvalued euro.
But in a surprise departure from the bank's previous policy of never pre-committing on interest rate moves, Draghi said the monetary policy makers were now sufficiently concerned to take more action.
The governing council was "dissatisfied" with the current path of inflation and was "not prepared to accept it as a fact of nature," Draghi said.
As a result, the governing council "is comfortable with acting next time," he said.
But he added that "we want to see the staff's projections that will come up in early June."
At 2100 GMT Thursday Wednesday
EUR/USD $1.3840 $1.3911
USD/JPY 101.66 yen 101.87 yen
EUR/JPY 140.69 yen 141.74 yen
GBP/USD $1.6931 $1.6953
EUR/GBP 0.8173 pound 0.8204 pound
USD/CHF 0.8800 franc 0.8761 franc
EUR/CHF 1.2180 franc 1.2188 franc