The euro fell to a more than 11-year lows after Mario Draghi today announced that the European Central Bank began a program to increase inflation by buying government bonds
The single currency fell against all 31 world currencies. Draghi announced that the Central Bank of Europe will launch a program for infusion of 60 billion. EUR per month, the total amount will be about 1.1 trillion euros to the last quarter of 2016. The euro fell 2.1 percent to 1.1368 against the US dollar, which is the lowest level since 2003. Against the yen, the single currency fell 1.7 percent to 134.67 yen.
"The big question we all ask at the moment, however, is: Will it be successful this campaign by the European Bank? If we look at the current situation in the US, which also made a similar step, the answer is YES" shared by Credit Agricole SA in New York today.
The euro is likely to continue the downward trend due to these decisions by Mario Draghi and company, and expected increases in US interest rates support the dollar in the longer term.
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