Euro at 4½-year low as ECB splits from Fed

New York

THE euro slumped to the lowest in 4½ years against the US dollar last week after the European Central Bank signalled it will embark on large-scale government-bond purchases as the Federal Reserve moves closer to raising interest rates.

The 19-nation common currency slid for a third week after ECB president Mario Draghi said he can't rule out deflation in the euro area. The yen also declined for a third week. The rouble plummeted 9.4 per cent to lead emerging-market peers lower. The dollar advanced against all of its 16 major peers before a report this week which may show that the jobless rate fell to a 6½-year low.