ECB's Draghi says bond buying impact on exchange rate strong

[ROME] European Central Bank President Mario Draghi said bond-buying by the central bank has brought down long-term interest rates and lowered the euro's exchange rate against the US dollar.

"The effect on the exchange rate has been undoubtedly significant," Mr Draghi said during testimony in parliament on Thursday, noting also the decline in long-term interest rates.

The euro hit a 12-year low below US$1.05 against the dollar at the start of last week, but has since recovered to US$1.09 since.

REUTERS