BUSINESS
Speaking to a conference in Portugal, ECB President Mario Draghi said the ECB could adjust its policy tools of sub-zero interest rates and massive bond purchases as economic prospects improve in Europe.
The U.S. dollar hit a more than nine-month low against the euro on Tuesday after the head of the European Central Bank opened the door to steps that might begin to reduce the central bank's emergency stimulus to the economy.
Speaking to a conference in Portugal, ECB President Mario Draghi said the ECB could adjust its policy tools of sub-zero interest rates and massive bond purchases as economic prospects improve in Europe.
But any change in the bank's stance should be gradual, as "considerable" monetary support is still needed and the rebound in inflation will also depend on favorable global financing conditions, he added.
The euro's gains briefly elevated it more than 1 percent against the greenback to $1.1304 in the U.S. morning session, marking its strongest level since Sept. 8, 2016.
"Just the fact that the ECB is considering their options right now is considered to be a hawkish signal," said Sireen Harajli, FX strategist at Mizuho in New York.
The status of the ECB's bond-buying program has been a key driver of the euro's value in recent weeks. The dollar jumped against the euro earlier this month after the central bank said policymakers had not discussed scaling back its massive bond-buying program.
The dollar index, which measures the greenback against a basket of six major currencies, was last down 0.7 percent at 96.783 after touching a 13-day low of 96.649 earlier in morning trading.
The dollar's weakness was exacerbated after a survey showing weaker-than-expected U.S. home price acceleration in April. Recent data on retail sales, manufacturing production and inflation have given pause and housing data has been mixed.
Traders were awaiting comments from Federal Reserve Chair Janet Yellen at 1 p.m. ET (1700 GMT), when she is scheduled to take part in a discussion on global economic issues in London.
Traders expect Yellen to maintain her positive outlook on the U.S. economy despite the recent weak data, reinforcing the central bank's plan to raise rates once more this year and three times next year.
The dollar "could be in line to rebound" on Yellen's comments, said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, in a research note.
The dollar hit a more than one-month high against the yen, of 112.15 yen. Manimbo said traders who are bearish on the yen have the most faith in the Fed raising rates again this year.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
Raheja Developer's 42-floor The Leela Sky Villas to bring ultra-luxury to Central West Delhi
Cristiano Ronaldo doesn't have any tattoos, reason will leave you SHOCKED, it is...
Prayagraj sees unprecedented crowds, traffic jams leave devotees without food, water amid Mahakumbh
Tirupati Laddu Prasadam row: CBI arrests four people in ghee adulteration case
JEE Mains 2025 Result: NTA JEE Session 1 result to be declared on..., know how to download scorecard
Donald Trump reveals BIG plan, says committed to 'buy and own' Gaza, allow others to...
Radhika Merchant dances her heart out at her friend's wedding to 'Anarkali Disco Chali', Watch
Did Lionel Messi’s son Thiago score 11 goals in single match for Inter Miami? Here's the truth
India vs England: Rohit Sharma goes past Chris Gayle in all-time ODI list led by Shahid Afridi
Ed Sheeran BREAKS silence after Bengaluru cops stop his street performance: 'It wasn't just...'
India gains, Pakistan struggles: Forex reserves rise to Rs 55300044 crore, Pak's decline continues
IND vs ENG: Rohit Sharma returns to form before Champions Trophy, slams 32nd ODI century vs England
'Mummy daantegi...': Little boy screams as tiger pulls his shirt at zoo, WATCH viral video
Manipur CM N Biren resigns nearly two years after ethnic violence in state
Viral Video: Women travel in train toilet to Maha Kumbh, internet says "Is this a joke?
Vicky Jain's 'bizarre' comment leaves wife Ankita fuming with anger, netizens declare him 'red flag'
Bengaluru cops stop Ed Sheeran's street performance, video goes viral - Watch
Viral video: Lion spotted on moving jeep? Here’s the truth
YouTuber Gaurav Taneja reveals he was 'shocked' over his wife's decision to...
Teddy Day 2025: Date, history and significance of the fourth day of Valentine’s week
'Sugar is the biggest toxin...': Naga Chaitanya calls sugar more toxic than alcohol and tobacco
‘Over for Blinkit, Zepto’, this startup claims ‘delivering humans’ in 10 minutes, shocks netizens
Pratik Gandhi on his struggles, managing job with acting: 'Chaar gante sona luxury tha' | Exclusive
Why did Kumar Vishwas' wife cry after Manish Sisodia lost Delhi Elections: 'Not always power...'
'Fast and Furious' cars collision creates a Rohit Shetty scene on Indian road, viral video
'Go to the room, cry...': Salman Khan's wisdom on love, breakup is all you need this Valentine's Day
Parvesh Verma, BJP leader who defeated Arvind Kejriwal, makes BIG claim, says, 'we have to do...'
Sumona Chakravarti on joining Kapil Sharma show: 'Went from Ram Kapoor's sister to...'
Is Elon Musk still interested in buying TikTok? Tesla CEO provides BIG update, claims...
Groom's mother and mama join hands to burn the dance floor down, viral video sets internet on fire
What is historic 'Blue Gold', costlier than real gold?
Salman Khan opens up about his daddy issues with Salim Khan: 'How can he be right all the time...'
Powerful 7.6 magnitude earthquake jolts Caribbean, tsunami advisory issued
Salman Khan supports Sooaj Barjatya, pens note on his OTT debut, calls his show Bada Naam Karenge...
Little girl's energetic dance to 'London Thumakda' leaves netizens in awe, WATCH viral video
Meet man who left IIT, later earned Rs 286 crore in just 20 weeks by...
Viral Video: Sadhus playing cricket at Mahakumbh mela wins hearts online, watch
Happy Chocolate Day 2025: Wishes, WhatsApp messages, quotes to share with your partner on February 9
Meet woman, who plays key role in Rs 33661 crore company, daughter of billionaire