Euro at four-week high after ECB announces modest stimulus

in Business

FRANKFURT, Germany,  The euro traded Thursday at its highest level in a month and European stocks fell when the European Central Bank’s stimulus plans fell short of expectations.

Euro sign at European Central Bank headquarters in Frankfurt, Germany. the Euro rose to a four-week high on Dec. 3 after a modest stimulus package was unveiled by the ECB. (UPI/Shutterstock/canadastock)
Euro sign at European Central Bank headquarters in Frankfurt, Germany. the Euro rose to a four-week high on Dec. 3 after a modest stimulus package was unveiled by the ECB. (UPI/Shutterstock/canadastock).

 

 

 

 

 

 

 

 

 

 

 

The value of the euro was as high as $1.0894, up nearly three cents from Wednesday after the bank cut interest rates by 10 basis points and extended a bond-buying program. The euro was on track to surpass its largest daily gain since August, when financial turmoil in China sent investors back to the euro from emerging-market currencies. Stocks fell sharply, the Stoxx Europe 600 index of Eurozone stocks dropping by 2.7 percent on Thursday.

Investors had expected a bigger rate cut, of up to 20 basis points.

The value of the euro had declined in recent weeks, losing about five percent since October as ECB officials publicly expressed interest in a stimulus. Currencies typically lose value when central banks cut interest rates.

By Ed Adamczyk

UPI NEWS