Euro falls broadly after ECB leaves rates unchanged

London

THE euro fell broadly on Wednesday, after the European Central Bank (ECB) kept borrowing rates unchanged, as expected, and is likely to reiterate a dovish policy bias despite a recent pick-up in economic activity.

At Wednesday's meeting, the ECB left its main refinancing rate, which determines the cost of credit in the economy, at 0.05 per cent. It also kept the rate on bank overnight deposits at -0.20 per cent, which means banks pay to park funds with it.

Bets against the euro are at a high level but investors are still looking to sell into rebounds, with ECB President Mario Draghi likely to say the bank intends to fully deliver previously announced stimulus measures as risks to growth remain and inflation is subdued. That would quash talk the ECB might scale down its asset purchase programme sooner rather than later, and…