Euro gains as ECB stimulus not seen as immediate

[NEW YORK] The euro advanced against the dollar and other leading currencies Wednesday after European Central Bank chief Mario Draghi signaled a cautious approach to further monetary stimulus.

Mr Draghi, addressing a parliamentary panel in Brussels, acknowledged that the macroeconomic environment had become "more challenging" compared with earlier in the year.

But Mr Draghi said more time was needed to determine whether weaker conditions in emerging markets are "of a temporary or permanent nature," he said.

Mr Draghi said the central bank could adjust its asset purchase programme "if more monetary policy impulse should become necessary." Joe Manimbo, a senior market analyst at Western Union Business Solutions, said Mr Draghi's remarks were more hesitant than expected on stimulus.

Mr Draghi "suggested stronger stimulus wasn't right around the bend," Mr Manimbo said.

"Draghi today signaled a 'wait and see' approach to policy, not meeting markets' dovish expectations which helped allay bearish pressure on the euro," he said.

AFP