Euro pulls off 2-month high; Draghi warns on excessive strength

Reuters with

The euro fell from a two-month high against the dollar on Thursday after the European Central Bank kept interest rates unchanged, as expected, but President Mario Draghi renewed a warning about the currency's strength.

The euro, which has gained over 4 percent in the past six months and helped ease inflation already running at subdued levels, was also buoyed by a rise in overnight money market rates driven by dwindling excess cash in the euro zone.

Yet in a news conference, Draghi said the strengthening euro was cause for "serious concern" on Thursday, and suggested the bank could take action next month after holding rates in May.


The probed levels close to $1.40, its highest level since March 13 when it hit a 2-1/2 year peak of $1.3967 before falling to near $1.39 before the ECB rate decision.

--By Reuters, with