CANBERA (Alliance News) - The euro continued to be weaker against its major rivals in European deals on Thursday, after the European Central Bank launched a raft of stimulus measures, including cut in its key interest rates and an expansion to its asset purchase programme, to support ailing euro area economy. The bank also announced a new round of longer-term financing operations and decided to include non-bank debt in its list of eligible assets for purchases. In its policy session in Frankfurt, the 25-member Governing Council lowered its benchmark interest rate, the main refinancing rate, by five basis points to a record low zero %. Economists had expected the rate to be left unchanged. The already-negative deposit rate was cut by 10 basis points to -0.40%. The decision was in line with economists' expectations. The marginal lending facility rate was reduced by five basis points to 0.25%. Economists had expected the rate to be held steady. The bank ramped up the monthly purchases under the asset purchase programme by EUR 20 billion to EUR 80 billion starting in April. Economists were looking for an increase of at least EUR 10 billion. The bank also announced a new series of four targeted longer-term refinancing operations, each with a maturity of four years. These will start in June. The ECB President Mario Draghi has unveiled the latest ECB Staff macroeconomic projections at a customary press conference at 8.30 am ET in Frankfurt. Draghi lowered eurozone growth and inflation projections, as lower global growth prospects poses downside risks to economy. The bank cut inflation projection for 2016 to 0.1 from 1.0%. For 2017, the bank lowered inflation outlook to 1.3% from 1.6%. In other economic news, figures from Destatis showed that Germany's exports dropped unexpectedly in January, while imports grew more than forecast. Exports fell 0.5% month-on-month in January, following a 0.7% drop in December. This was the second consecutive decrease in shipments. Economists had forecast exports to grow 0.8%. The currency was lower against its most major rivals in Asian trading, after being mixed yesterday. The euro depreciated to an 8-day low of 1.0845 against the greenback, down by around 1% from Wednesday's closing value of 1.0991. Continuation of the euro's downtrend may lead it to a support around the 1.07 zone. The single currency fell to 1.0892 against the franc, its lowest since March 4, while touching a 5-week low of 0.7653 against the pound. The euro ended Wednesday's trading at 1.0968 against the franc and 0.7737 against the pound. If the euro extends slide, 1.08 against the franc and 0.76 against the pound are seen as its next support levels. The euro, having advanced to a 2-day high of 124.91 against the yen at 1:00 am ET, reversed direction and declined to 123.65. The euro is seen finding support around the 122.00 level. Data from the Bank of Japan showed that Japan's producer prices fell 0.2% on month in February. That was beneath expectations for a fall of 0.3% following the downwardly revised 1.0% contraction in January. The 19-nation currency slid to more than 3-month lows of 1.4389 against the loonie and 1.4467 against the aussie, from yesterday's closing values of 1.4562 and 1.4680, respectively. Further downtrend may take the euro to support levels of around 1.42 against the loonie and 1.43 against the aussie. Pulling away from an early 10-day high of 1.6588 against the kiwi, the euro edged down to 1.6234. The euro is poised to locate support around the 1.60 region. Looking ahead, Canada housing price index for January and US weekly jobless claims for the week ended March 5 are slated for release in the New York session. At 2:00 pm ET, US Federal budget balance for February is set to be published. At 4:15 pm ET, Bank of Canada Governor Stephen Poloz is expected to speak at the Institute for Advanced Research in Ottawa.

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