The euro held losses Friday after the European Central Bank retained its asset purchase program and implied the likelihood of prolonging the program.
ECB President Mario Draghi said the central bank’s bond-buying program may run beyond September 2016, and its extent and composition may be changed.
Against the US dollar and the Japanese yen, the common currency closed at $1.1122 and ¥133.13.
The stipulation the ECB’s asset purchase program may be extended beyond September next year is escalating, “which should continue to weigh on euro and eurozone short-term swap rates,” said Elias Haddad, Senior Currency Strategist at Commonwealth Bank.
The central bank cautioned growth would suffer from devitalizing momentum in emerging markets, specifically China and slumping oil prices could pull eurozone back into deflation in the next months.
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