Euro Plunges to 20-Month Low on ECB
- Currency drops as much as 1.2%, dipping below November levels
- Bloomberg dollar index surges to its highest level this year
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The euro fell to its weakest level since June 2017 after European Central Bank President Mario Draghi downgraded the outlook for the region’s economy and promised more support, while the Bloomberg dollar index surged to its highest level this year.
The ECB’s decision to deliver fresh stimulus comes a day after the Bank of Canada dialed back its expectations for policy tightening, and Draghi is part of a growing chorus of central bankers around the globe pivoting toward more accommodative policy. While the Federal Reserve has also shifted to a less hawkish stance, bond yields in the U.S. remain higher than in other developed markets, maintaining the dollar’s allure.