Europe’s single currency tanks to lowest level since July 2013 after surprise rate cut by ECB

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LONDON – The euro slid sharply after the European Central Bank surprised traders by trimming its main interest rate to a record low of 0.05 per cent from the previous low of 0.15 per cent.

Europe’s single currency, which has been in retreat over the past few weeks on expectations that the ECB may pursue further stimulus measures, fell 0.9 per cent to $1.3023 following news of the cut. The euro is now at its lowest level since July 2013.

Financial markets will be keeping a close watch on the upcoming press briefing from ECB President Mario Draghi. There are expectations that he may announce further measures, such as a Federal Reserve-style monetary stimulus of large-scale bond purchases, to boost the ailing economy of the 18-country eurozone.

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