Monday, 12 September 2011

ECB Keeps Rates Unchanged, Euro Falls

The euro weakened today, falling for a second day against the dollar and the yen after European Central Bank kept its key interest rate unchanged yesterday.

The ECB left its minimum bid target of 1.5 percent. Central Bank President Jean-Claude Trichet said at a press conference after the monetary policy decision:

Looking ahead, we expect the euro zone economy will grow moderately, subject to uncertainty particularly high and the intensification of downside risks. 

Trichet said the euro zone's gross domestic product is expected to grow "very moderately in the second half of this year" and the ECB revised its projections for GDP growth downward.

EUR/USD slipped from 1.3808 to 1.3810 today as of 11:42 GMT after rising to 1.3939 earlier. EUR/JPY went down from 107.58 to 107.43.

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