The euro declined against the other major currencies in New York deals on Thursday, as the European Central Bank President Mario Draghi said that Eurozone recovery continues to be weak, while escalating conflict in Yemen also weighed on sentiment.
Speaking to Italian lower house, Draghi noted that the ECB bond buying program is having effect on the euro area economy. Monetary policy coupled with weak oil prices and reforms are supporting the economic activity, Draghi noted, adding that structural reforms are also needed for economic growth.
Even though short term out look for the region appears more favourable, recovery remains weak, Draghi indicated.
Saudi Arabia has launched airstrikes targeting Houthi rebels in Yemen with the support of Gulf region allies and the U.S. The country has been facing a power vacuum from January, when the rebels staged an apparently successful coup, forcing president Abd rabbu Mansour Hadi and his cabinet to resign.
The euro fell to 1.0909 against the greenback, off early 3-week high of 1.1051. The euro remained lower against the franc, trading at 1.0471.
Extending early decline, the single currency fell to a 3-day low of 129.98 against the yen.
Pulling away from an early session’s high of 0.7384 against the pound, the euro was trading lower at 0.7364.
The next possible support for the euro is seen around 1.08 against the greenback, 0.73 against the pound, 128.5 against the yen and 1.00 against the franc.
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