AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

NEW YORK: The euro jetted past $1.20 and was on course for its biggest daily percentage gain against the US dollar in nearly two weeks on Thursday amid European Central Bank indications a decision on tapering stimulus is likely in October, while the dollar slipped against the yen.

The ECB must take into account the weakening of inflation due to the strong euro as it prepares to wind down its unprecedented stimulus program, its chief Mario Draghi said after the ECB kept rates at record lows and confirmed that asset purchases would continue at least until December.

Draghi reiterated, however, that policymakers would decide on tapering this autumn, adding: "Probably the bulk of these decisions will be taken in October."

The dollar index, which measures the greenback against a basket of six major rivals, fell as much as 1 percent to its lowest since January 2015 of 91.405.

"Even though Mr. Draghi tried to sound dovish, in my opinion it sounded like there was a decent level of confidence in economic growth," said Sireen Harajli, FX strategist at Mizuho in New York. "The likelihood to announce tapering in October I think probably drove the euro higher."

The euro rallied as much as 1.2 percent on the day to $1.2059, its highest since Aug. 29, when the currency hit a more than 2-1/2-year high of $1.2069.

The euro has surged more than 14 percent so far this year through Thursday trading, and Draghi cited the strength as a reason for the ECB lowering its inflation forecasts for next year and 2019.

The dollar fell more than 0.6 percent against the safe-haven yen to a session low of 108.50 yen. Analysts said the yen rallied as US and German government bond yields declined on the back of the ECB decision to keep rates at record lows.

The dollar also fell against the yen as traders grew uncomfortable with the outlook for US fiscal policy once a three-month extension to the US debt limit that US President Donald Trump said he agreed to Wednesday expires.

"The risk for the dollar still exists," said Kathy Lien, managing director at BK Asset Management in New York. "The can has been kicked down the road, so the problem hasn't been resolved."

The dollar fell to a fresh more than two-year low against the Canadian dollar of C$1.2139 a day after the Bank of Canada raised interest rates.

 

Copyright Reuters, 2017

Comments

Comments are closed.