The euro fell back below $1.12 today, after a European Central Bank (ECB) policymaker hinted that the Bank is preparing to ramp up its bond-buying programme before the summer.
By mid-afternoon in New York, the currency had fallen 1.42 per cent to $1.1154 – the first time it has dropped below the $1.12 mark since the beginning of this week. Having edged dangerously close to parity with the dollar in March, the euro has since made gains – although worries about Greece have caused jitters among investors.
Yesterday evening Benoît Coeure, an ECB policymaker, told a conference the ECB will front-load some of its purchases of sovereign debt in the next two months, in anticipation of a quieter period in July and August.
However, the speech was not disclosed by the ECB until today, causing the second-biggest one-day fall by the euro since 2012.
Today Kit Juckes, of Societe Generale, said the ECB will need more support over the next few weeks.