Euro drops below $1.18 to hit 9-year low
The euro extended losses on Thursday to hit a 9-year low against the dollar.
The euro fell past reported option barriers at $1.18 to hit a low of $1.17915 on trading platform EBS. It was the single currency's lowest level since late December 2005. Data on Wednesday showed consumer prices in the euro zone fell in December from a year earlier, marking the first annual decline since 2009. That cemented expectations the ECB will probably announce a bond buying programme at its policy meeting on Jan. 22
Dollar slips vs yen on risk aversion, euro fragile
The dollar slipped against the safe-haven yen on Tuesday as investor risk aversion mounted on the back of a sharp drop in equities. The battered euro caught some relief as the dollar stumbled against the yen, helping the common currency pull back a bit from a nine-year trough. The dollar dipped to as low as 118.65 yen from Monday's high of 120.68, moving further away from a seven-year peak of 121.86 set last month. A sharp fall in US Treasury yields also undermined the dollar versus the yen, with 10-year yields diving 14 basis points in just two sessions.
The euro last traded at $1.1961, up 0.3 percent, after dipping into the $1.1860 area on Monday, reaching depths not seen since early 2006. The euro's bounce, however, is expected to be limited as the prospect of more policy easing from the European Central Bank has grown ever stronger.
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