Dollar stands tall after dovish Draghi pressures euro

by Jonathan Adams

The dollar stood tall in Asian trading on Friday, on track for a weekly gain against a basket of currencies, as the euro wallowed at seven-month lows after the European Central Bank doused speculation that it would taper its stimulus.

The dollar index, which gauges the greenback against six major rivals, was up 0.2 per cent at 98.476, up 0.5 per cent for the week and near a session high of 98.564, its loftiest peak since March 10.

The euro slipped 0.2 per cent to $1.0907 (£0.89), poised to shed 0.6 per cent for the week after plumbing $1.0891 (£0.89) earlier on Friday, its lowest since March 10.

ECB President Mario Draghi left the door open to a wide range of policy options and emphasized that a long-awaited rise in inflation is predicated on “very substantial” monetary accommodation – giving markets no reason to believe the central bank was ready to talk about tapering its 1.7 trillion euro (£1.52 trillion) asset-buying program.

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