Euro pauses after biggest gains in six years

London

THE euro took a breather on Thursday, after its biggest two-day gain against the dollar in over six years on Thursday as the European Central Bank played down the impact of bond market volatility and the eurozone returned to inflation.

The biggest mover among major currencies on Thursday was the Australian dollar, which skidded 1 percent to US$0.7708 after weak data renewed expectations of further monetary easing.

Tracking a spike in German Bund yields on Wednesday, their biggest two-day move since 1998, the euro had rallied across the board, touching a two-week high against the dollar at US$1.12855 after ECB president Mario …