The euro saw a sharp surge as Mario Draghi spoke on Thursday afternoon, with the president of the European Central Bank (ECB) discussing inflation expectations and the potential end of its asset-purchase program.
Draghi said the central bank saw signs of “unquestionable improvement” in euro zone growth and pointed to plans for policymakers to begin discussing possible changes to its quantitative easing (QE) program in the fall.
He did not set a set a time frame for the tightening of the bank’s ultra-loose monetary policy, but said that policymakers were “unanimously agreed” on opening talks after the summer recess.
The euro jumped to near-14-month-highs of $1.1571 against the dollar on Draghi’s comments, recovering losses seen in the immediate wake of the ECB’s policy decision earlier Thursday.
The single currency initially fell to $1.1479 against the greenback after the ECB unanimously voted to hold interest rates at 0.00 percent and said that it remains poised to step in and increase the “size and/or duration” of its stimulus purchase, should the economic outlook take a downturn.