The euro rose to the strongest in two months against the yen after the European Central Bank President Mario Draghi announced a bond-purchase plan to cap borrowing costs in the areaâ€™s most-indebted nations.
The dollar fell against higher-yielding currencies before a report tomorrow that may show the pace of hiring in the U.S. slowed in August, adding to evidence the Federal Reserve will initiate a third round of bond purchases. The 17-nation euro weakened earlier against the U.S. currency after the ECB forecast a deeper economic contraction this year. Swedenâ€™s krona weakened after the central bank cut interest rates.
â€œThe clarification today is helping to reduce the tail risk that we will have another intensification of the crisis,â€ said Charles St-Arnaud, a foreign-exchange strategist at Nomura Holdings Inc. in New York. â€œThat means that weâ€™ve probably seen the worst in the short-term for the euro dollar. That doesnâ€™t mean that it wonâ€™t continue to fall over time because we still have a lot more event risk coming up.â€
via Bloomberg 
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