Euro’s Plunge Reignites Calls for Parity on ECB Bond-Buying Plan
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The European Central Bank’s pledge to front-load its bond buying has given hope to euro bears frustrated by the currency’s sharpest rally in almost five years.
In less than three days, the euro has tumbled 3 percent versus the dollar, erasing a third of its gains since mid-March. The cost of protecting against further declines using options jumped by the most in four months after ECB Executive Board member Benoit Coeure said on Monday that the central bank will bring forward some of its monthly bond purchases before an anticipated summer lull.