Euro Gains as ECB Signals Deflation Risk Is Contained
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The euro gained against 12 of its 16 major counterparts as European Central Bank policy makers signaled deflation risks are contained, subduing speculation of a round of bond-buying to boost prices and economic growth.
The shared currency snapped a three-day slump versus the U.S. dollar as ECB executive board member Yves Mersch said deflation risks aren’t imminent and Governing Council member Ewald Nowotny signaled there is no immediate need for action. A measure of implied price swings in currency markets fell to the lowest in more than six years before minutes of the Federal Reserve’s March meeting. The ruble fell amid pro-Russian protests in eastern Ukraine. The greenback dropped with stocks.