Draghi's Pledge to Save Euro Sends Markets, Euro Higher
European Central Bank President Mario Draghi pledged on Thursday to do whatever was necessary to protect the euro zone from collapse, sending markets and the euro higher Thursday afternoon.
"Within our mandate, the ECBis ready to do whatever it takes to preserve the euro. And believe me, it will be enough," he told an investment conference in London.
He said the central bank could fight unreasonably high government borrowing costs. This week has seen Spanish bond yields hit dangerously high levels.
"To the extent that the size of the sovereign premia (borrowing costs) hamper the functioning of the monetary policy transmission channels, they come within our mandate." The euro rose and safe-haven German bond futures turned negative after the comments.