The euro fell to its lowest level against the dollar in 11 years – Los Andes (Argentina)

The euro fell yesterday below the floor of $ 1.10 for the first time in 11 and a half years, weighed down by the publication program of massive bond purchases by the European Central Bank (ECB) will begin next week.

Around 17 GMT yesterday (14 in Argentina), the euro hit a level of $ 1.0988, the lowest since September 2003, while earlier this week the single currency was trading around to 1.12 per dollar.

The euro began to accelerate its decline after ECB President Mario Draghi announced that the institution will begin next week a program of quantitative easing.

“After the announcement on January 22, we will start on March 9,” a program of buying government bonds denominated in euros on the secondary market, Draghi told a news conference.

The ECB president added that this type of monetary policies “have already proven to have a significant number of positive effects.”

“The euro suffered a back to reality after Draghi noted that the asset repurchase program, to be launched next week, could extend even beyond the end date” set for September 2016, said Ashraf Laidi, an analyst at City Index.

Meanwhile, Draghi said the bank revised its growth forecast for 2015 to 1.5% from a previous estimate of 1%, adjusting also raised its projections for 2016 and 2017.

“Investors continue to operate with caution as we approach the weekend,” said Craig Erlam analyst Broker Oanda agency.

The plan is to implement an expansionary monetary policy by buying back 1,140 million in public and private debt, in order to stimulate the ailing European economy and dwindling prices.

With regard to prices, the ECB said it will have close to zero growth, down from the previous projection, but noted that rising 1.5% and 1.8% in 2016 and 2017, respectively .

These programs of quantitative easing (known as Quantitative Easing (QE, in English) involve massive financial system, meaning a fall in the value of the currency injections. Meanwhile, an ounce of gold was operating in 1,202 dollars in afternoon trade, compared to $ 1,999.50 on Wednesday.