Euro skids to lowest since March after Draghi is guarded on QE course

A shop cash register is seen with both Sterling and Euro currency in the till.
A shop cash register is seen with both Sterling and Euro currency in the till. PHOTO: REUTERS

TOKYO (BLOOMBERG) - The euro fell to its lowest since March on Friday (Oct 21) after Mario Draghi signaled on Thursday that quantitative easing won't come to an "abrupt" end.

The single currency headed for a third weekly loss after the European Central Bank president said neither tapering nor an extension of bond-buying stimulus was discussed at a monetary meeting that ended that day. That leaves traders waiting until at least December for news about policy changes. Only the Canadian dollar has fallen more this week among major currencies.

"It's a double-whammy from the ECB meeting," said Matt Simpson, a senior market analyst at ThinkMarkets in Singapore. "Draghi didn't talk tapering and suggested easing in December. That's got traders pricing in a weaker euro."

The euro was down 0.2 per cent at US$1.0904, after plumbing to to US$1.0900, its lowest since March 10. It has fallen 0.6 per cent this week. Mr Simpson predicts a drop toward US$1.0830.

The euro also weakened against the Singapore dollar, dropping to 1.5200 Singdollars at 10:40am, down 0.26 per cent from its close on Thusrday of 1.5239.