EUR/USD Falls Heavily to 1.32 on Dovish Draghi

The euro fell to its lowest in nearly a year against a broadly firmer dollar on Monday after comments from the head of the European Central Bank raised prospects of more policy easing as early as next week.

The common currency skidded to $1.3185 in early trade, from around $1.3246 late in New York. It also lost ground against many other currencies, notably hitting a near 10-month low on the Australian dollar at A$1.4163.

That helped lift the dollar index towards its Sept. 5 peak of 82.671.  A break above will take it to levels not seen since July 2013.  In a stronger language than he has used in the past, ECB President Mario Draghi on Friday stressed the central bank is prepared to respond with all its “available” tools should inflation drop further.

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