The euro wallowed near its weakest level in over 11 years against the dollar on Thursday, as investors waited for the European Central Bank to announce more details of its massive bond-buying programme. The common currency eased 0.1 percent to $1.1065, holding just above Wednesday’s low near $1.1061, which was its lowest level since September 2003.
The ECB, which starts its quantitative easing (QE), or bond-buying, programme worth more than 1 trillion euros this month, is expected to detail the plan later in the day following its policy meeting. The QE scheme’s details might not trigger much reaction in the euro, since the launch of the programme has already been priced in, said Jesper Bargmann, head of trading for Nordea Bank in Singapore.
Still, the divergence in the outlook for monetary policies in the United States and the euro zone is likely to keep the euro under pressure versus the dollar, he said. “I think the dollar may keep strengthening as we wait for the first rate hike in the U.S…. The trend is in place,” Bargmann said.