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FOREX-Euro falls to 2-week low as ECB's Draghi hints more easing to come

Published 22/01/2016, 01:57 am
© Reuters.  FOREX-Euro falls to 2-week low as ECB's Draghi hints more easing to come
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* Euro falls nearly 1 pct vs dollar after ECB president's comments

* Euro falls below $1.08 for first time since early January

* ECB president points to volatility, geopolitical risk in speech (Recasts with U.S. data; change byline, dateline, previous LONDON)

By Dion Rabouin

NEW YORK, Jan 21 (Reuters) - The euro fell to a two-week low against the dollar on Thursday after European Central Bank President Mario Draghi suggested the bank could launch additional stimulus measures in the euro zone in March.

The ECB kept interest rates unchanged as expected, and in his speech, Draghi said it would be necessary to review the bank's monetary policy stance again at its March 10 meeting. The euro EUR= fell below $1.08 for the first time in two weeks during Draghi's speech. we start the new year, downside risks have increased again amid heightened uncertainty about emerging market economies' growth prospects, volatility in financial and commodity markets and geopolitical risks," Draghi said during the conference.

The ECB head pointed to concerns in China and worries over slumping oil prices during the speech.

"Mr. Draghi certainly kicked open the door to action as soon as (the ECB's) next meeting in March. He sounded a concerned tone about global developments and how that can adversely impact already anemic inflation," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

"It's like a Draghi do-over. Last month he sparked this robust rally in the euro, and now he's taken back much of those gains."

The euro was last down 0.6 percent against the dollar at $1.0826.

The single currency also hit a nine-month low against the yen during Draghi's comments.

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