Euro dives under US$1.12 on likely ECB action

London

THE euro dived back below US$1.12 on Tuesday after European Central Bank (ECB) officials said the bank could take further action to lower eurozone bond yields and boost inflation, potentially flooding the market with yet more euros.

Sterling also skidded, shedding over one per cent to fall below US$1.55 after data showed British inflation fell into negative territory last month for the first time since 1960.