Euro Racing to Record Drop as Draghi QE Purchases Depress Yields
When Will the Euro Hit Parity With the Dollar?
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The euro’s slump pushed it toward its biggest ever quarterly decline versus the dollar as European Central Bank purchases of sovereign debt sent bond yields to record lows across the region.
The shared currency has weakened 12.8 percent this year, with almost three weeks before the quarter ends, eclipsing the 10.6 percent decline during the credit crunch in the third quarter of 2008. The euro dropped to an almost 12-year low Wednesday as ECB President Mario Draghi reiterated the central bank’s commitment to boost inflation, while the 1.1 trillion-euro ($1.2 trillion) quantitative-easing program entered its third day. Demand for U.S. Treasuries surged.