Draghi measures may test Denmark's euro peg

Copenhagen

AS Mario Draghi tries to pump as much as one trillion euros (S$1.62 trillion) of liquidity into the euro area, a little nation on Europe's northern rim is preparing its defence of a 30-year-old currency regime.

The unprecedented stimulus push by the European Central Bank president promises to test the euro peg in Denmark, where the benchmark interest rate is already below zero. Should ECB measures weaken the euro, deputy governor Per Callesen says there is basically no limit on how far Denmark is willing to go to defend the krone's peg to Europe's single currency.