The euro continues to fall against the dollar – Terra Colombia

The euro continues to fall against the dollar – Terra Colombia

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January 7, 2015 • 10:43

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The euro accentuated its decline against the dollar on Wednesday, a reinforced after the announcement of the price drop motion in the euro area in December, not only reinforces expectations of further measures from the European Central Bank (ECB).

Around 14H30 GMT, the single European currency was worth $ 1.1824, compared to the 1.1892 on Tuesday night. The euro even came to assert, at 14h05 GMT, $ 1.1816, its lowest level since February 2006. On Monday night, the single currency rose in value to $ 1.1933 and 1.2002 on Friday . Night

The euro gained some ground against the Japanese currency to 141.14 yen – after falling at the start of Asian trade to 140.57 yen, up from 140.93 yen Tuesday night.

The dollar also rose against the Japanese currency to 119.39 yen against 118.50 yen yesterday.

Prices fell 0.2% in December in the euro area under the effect of falling energy prices, according to a first estimate published on Wednesday by the European statistical office Eurostat. If this first fall in prices within the monetary union continues, the euro zone will enter a period of deflation.

“They really are desperate times for the euro area is sliding toward deflation” said Dennis de Jong, analyst UFX.com.

According to him, the president of the European Central Bank (ECB), Mario Draghi, “can not afford to sit hands longer, (so) is increasingly likely implementation of a program of ‘quantitative easing’ (QE) “, ie, an injection of money into the financial system to revive the economy by buying assets, including debt of countries Eurozone in trouble.

This injection also have the side effect of diluting the value of the single currency, making it less attractive to investors.

The euro also suffers from the fear of a possible Greek exit from the eurozone in case of victory of Syriza radical left party in the elections of January 25, given its favorable to restructure debt and to end austerity measures position.