Resilient Euro Climbs as Europe Goes to Negative Rate

Then-U.S. Federal Reserve Chairman Alan Greenspan called it a conundrum a decade ago when he boosted interest rates only to see bond yields fall. European Central Bank President Mario Draghi is facing a similar puzzle with the euro.

Rather than retreat from the 18-nation euro, traders scooped it up yesterday after Draghi unveiled unprecedented monetary-stimulus measures including negative deposit rates that should tend to weaken a currency. Traders speculate the moves are likely to boost the region’s bond and stock markets, bolstering their appeal and the currency needed to buy them.