Euro pulled lower as traders heed Draghi's gripe

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The euro slid further on Friday, after strong words from European Central Bank chief Mario Draghi halted its march to a 2-1/2 year high.

Draghi said after the bank's policy meeting on Thursday that the euro's strength was "a serious concern" and that the ECB bank was "comfortable" with taking more action to support growth and raise inflation at its June meeting.

This sent the euro down sharply. But many strategists and traders in London cast doubt on whether it was enough to put a definitive end to the trend for a stronger euro that has dominated major currency markets so far this year.


The euro fell another 0.6 percent, to trade under $1.38, still near the top of the ranges that have so concerned ECB policymakers in the past two months. It hit a peak of $1.3995 on Thursday before Draghi's comments, its highest since October 2011.

If the euro's strength has been this year's big surprise for markets, then it is largely in the context of the dollar's failure to make good on the raft of calls in January for it to strengthen.

Against the yen the dollar was little changed under 102 yen, still not far from a three-week low of 101.43 yen set on Wednesday. Likewise, held steady near $1.69 within striking distance of $1.70—a level it has not broken since August 2009.

For the week, the greenback is down 0.5 percent against the yen, weighed down by persistently dovish comments from the Federal Reserve and low U.S. Treasury yields.

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