EUR/USD Rallies to 1.24 as ECB Refrains From Adding Stimulus

The euro rose from a two-year low against the dollar after European Central Bank President Mario Draghi said policy makers will wait until next quarter to assess whether additional stimulus measures are required.

The shared currency trimmed gains after two euro-area central-bank officials familiar with deliberations said the ECB expects to consider a proposal for a broad-based asset-buying program including sovereign debt next month. The yen weakened past 120 per dollar for the first time since July 2007. The ruble slid as traders tested the willingness of Russian authorities to defend it. Brazil’s real declined.

“They have a broad-based package for January — that’s significant news,” said Fabian Eliasson, who works in foreign-exchange sales at Mizuho Financial Group Inc. in New York. “The question is how efficient it’s going to be. I want to see what the package is before shorting euro,” or betting the shared currency will decline in value.


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