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Euro rises as ECB's Draghi gives no hint of September action

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The euro rose to hit a day's high against the dollar on Thursday, after European Central Bank chief Mario Draghi said only that the bank would take time to reassess any changes in the economic outlook.

[LONDON] The euro rose to hit a day's high against the dollar on Thursday, after European Central Bank chief Mario Draghi said only that the bank would take time to reassess any changes in the economic outlook.

The ECB earlier as expected kept interest rates unchanged at record lows but there was no hint in Draghi's comments or the bank's post-meeting statement that it is set on easing policy further in September to support growth.

Some investors had speculated that in response to last month's vote by Britain to leave the European Union, the bank would signal more stimulus was imminent. The euro rose to $1.1060, up 0.35 per cent on the day.

"The euro has squeezed higher as Draghi offered no surprise and no strong sense of urgency," said a trader in a North American bank.

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Italian government bond yields rose to a three-week high while German yields fell after Draghi said no attention was given to specific instruments.

Media reports in the run up to the meeting had said the ECB was considering changing the country mix of its quantitative easing programme to skew purchases towards Italy.

REUTERS

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