The euro exchange fund dipped while European equities advanced as the European Central Bank remained committed to low rates while mulling unconventional measures to combat low inflation.
The CurrencyShares Euro Currency Trust (NYSEArca: FXE) fell 0.4% Thursday. FXE is still up 5.9% year-to-date. [Bearish ETFs to Play a Weakening Euro]
The euro to U.S. dollar exchange rate was hovering around $1.36 Thursday.
“The key ECB interest rates will remain at present levels for an extended period,” ECB president Mario Draghi said in a press conference, Bloomberg reports. “The combination of monetary policy measures decided last month has led to a further easing of the monetary policy stance. The monetary operations to take place over the coming months will add to this accommodation and will support bank lending.”
The ECB is backing as much as 1 trillion euros, or $1.36 trillion, in two initial tenders and a series of quarterly auctions under its targeted longer-term refinancing operations, or TLTROs.
Draghi also hinted that the central bank could implement quantitative easing down the line.
“If our medium or long-term assessment of inflation were to change, we certainly would use this broad asset purchase program,” Draghi said, according to a Wall Street Journal article.