EURUSD declines to the lowest level since July 2013 after the European Central Bank unexpectedly cut its main refinancing rate to a record 0.05 percent.
The euro fell 0.9 percent to $1.3019 as of 1:12 p.m. London time after sliding to $1.3015, the lowest since July 15, 2013. It declined 0.7 percent to 136.90 yen. The Japanese currency weakened 0.3 percent to 105.15 per dollar.
Kinsella said Commerzbank forecasts the euro will fall to $1.25 by end of March 2015.
Draghi said on Aug. 22 that bets on price increases “exhibited significant declines,” and policy makers are “ready to adjust our policy stance further.” That sparked speculation the central bank was considering further stimulus, including further asset purchases, a policy known as quantitative easing.
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