Euro slips versus dollar as Aussie hits 4-month high

Currencies Direct March 26th 2014 - < 1 minute read

The euro was lower against the dollar on Wednesday (March 26th)
as European Central Bank (ECB) policymakers continued to hint at
further easing.

EUR/USD was trading at 1.3818 having dipped to a low of 1.3748
yesterday. EUR/GBP was steady at 0.8350.

The single currency fell after Bundesbank chief Jens Weidmann
suggested a negative deposit rate could be used to curb the
exchange rate
, which ECB chief Mario Draghi had hinted last
week was becoming a concern for policymakers.

Weidmann even said the ECB could purchase assets to fend off
deflation, which is being seen as a radical softening in stance and
opens the door for the bank to pursue quantitative easing.

Meanwhile, the Australian dollar edged up to a four-month high
against its US counterpart after Reserve Bank of Australia governor
Glenn Stevens said the economy was broadly improving.

Speaking in Hong Kong he said that the lower exchange rate since
last April had helped, but there was little in the speech
to suggest that the bank was seeking to talk down the currency.

AUD/USD was up 0.50 per cent at 0.9210, while GBP/AUD fell below
the 1.80 level mark for the first time since December.

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