Euro drops on Draghi's comments

London

THE euro dipped briefly below US$1.07 on Thursday after European Central Bank chief Mario Draghi singled out the currency's more robust performance since May as one driver for a "weakening" outlook on inflation.

Mr Draghi's prepared testimony to the European parliament electrified a currency market which has been drifting since an unexpectedly strong batch of US jobs numbers last week prompted many to bet on a rise in Federal Reserve interest rates next month.