Euro Falls for First Time in 3 Days on ECB QE Rule Change Reportby
The euro fell for the first time in three days on speculation that the European Central Bank is considering loosening the rules to carry out additional stimulus.
The shared currency declined against most of its major peers after Bloomberg reported ECB policy makers are concerned that the pool of securities eligible for quantitative easing has shrunk after Britain’s vote to leave sparked a flight to quality into sovereign bonds.
"This is euro-negative," said Mazen Issa, senior foreign-exchange strategist at Toronto-Dominion Bank in New York. "The market will look at it from a perspective of the ECB is running out of eligible assets to buy. They are likely to see increased flows into dollar assets."
The euro fell 0.2 percent to $1.1106 as of 5 p.m. in New York. It added 0.2 percent to 114.61 per yen.