Posted On: February 08, 2013
Commentary by the governor of the central bank of Europe pulled the shared currency of the European Union toward its biggest weekly losses on foreign exchange markets in seven months on Friday, according to Bloomberg.
The losses come after policy makers with the European Central Bank convened in Brussels to negotiate terms and conditions regarding the budget from 2014 to 2020.
"The risks of a rising currency to economic growth in the region is something that the market has taken note of, and the ECB delivered a stark reminder that their policy will remain accommodative," the chief currency and payments strategist Jim Vrondas with the Asia-Pacific region at OzForex Ltd. in Sydney told the news source on Friday. "Their actions should continue to serve to weaken the euro."
Despite the weekly losses, the monetary unit has gained roughly 2.3 percent thus far this year against the world's reserve currency amid indications that the sovereign debt crisis is pulling back.
Reuters reports the ECB opted to preserve interest rates at a record low 0.75 percent during the Thursday policy meeting.
Category: Industry News
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