020 7898 0500The US dollar hit a nine-month low against the euro yesterday after the head of the ECB opened the door to steps that might start reducing the bank’s emergency stimulus for the economy. Speaking to a conference in Portugal, Draghi said the ECB could adjust its policy tools of sub-zero interest rates and massive bond purchases as economic prospects improve in Europe. But any change in the bank’s stance should be gradual.
The dollar’s weakness was exacerbated after a survey showed weaker-than-expected US home price acceleration in April. Recent data on retail sales, manufacturing production and inflation have given pause and housing data has been mixed.
Federal Reserve Chair Janet Yellen’s speech last night did little to support the dollar. Yellen took part in a discussion on global economic issues in London.
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