RTRS: Euro falls vs dlr. Trichet signals asset purchases
The euro fell briefly against the dollar on Thursday after European Central Bank President Jean-Claude Trichet said the central bank plans to buy euro-denominated covered bonds.
The announcement came after the ECB cut interest rates as expected to 1 percent and marked its first venture into direct asset purchases, a policy already embraced by some other central banks like the Federal Reserve and Bank of England.
The euro fell to $1.3280 from about $1.3340 after the annoucement but it rebounded to $1.3314. It rose as high as $1.3384 after the initial rate cut annoucement but before Trichet began speaking. It remained up 1.1 percent at 132.46 yen.
