LONDON -- The euro lost ground against other major currencies Wednesday after European Central Bank President Mario Draghi adopted a cautious tone, warning of the downside risks to economic growth. The euro sank to as low as $1.3109 against the dollar, its weakest since Mar. 16 while it also traded below Y108 against the yen. Against the pound, the common currency traded as low as GBP0.8270, its weakest level since Feb. 6. Draghi said the data confirmed the stabilization in economic activity at low levels and that the downside risks to the economic outlook related to tensions in euro-area debt markets as well as further rises in commodity prices. He added that the stimulus from recent non-standard measures, such as the two three-year long-term refinancing operation, would take time to bear fruit and that any exit strategy discussion is premature for the time being. "The LTRO is a three-year issue so it is unrealistic to expect it to have an immediate impact, more so in light of the problems in peripheral Europe," said Peter Kinsella, senior currency strategist at Commerzbank in London.

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