AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,941 Increased By 63.6 (0.92%)
BR30 22,802 Increased By 233 (1.03%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

NEW YORK: The euro rose Thursday after European Central Bank chief Mario Draghi's comments bolstered the single currency even as interest rates were kept low again.

Draghi avoided details on when the ECB might begin to wind down its bond-buying program, but said the matter would be on the agenda this fall. Analysts also noted that he avoided comments that might have deflated the euro's recent rally.

Equities were mixed, with Paris finishing lower and Frankfurt flat after both markets lost momentum with the euro's rally. In the US, the Nasdaq eked out a record for a third straight session, while the Dow and S&P 500 both retreated from all-time highs set Wednesday.

The ECB kept its key interest rates unchanged as Draghi played down expectations the bank could soon announce an end to its mass buying of 60 billion euros ($69 billion) a month of government and corporate bonds.

"We need to be persistent, and patient," Draghi said, as "really there isn't any convincing sign of pickup" in inflation.

But Draghi also said tapering would soon be discussed.

"We simply said that our discussions should take place in the fall, or in autumn, since we are in Europe," Draghi said.

Most ECB watchers expect the central bank to soon announce a path out of bond-buying that will see it "taper" or wind down the scheme step-by-step next year.

While inflation remains sluggish, economic growth in the 19-nation eurozone has picked up strongly enough to dispel the fears of deflation that had prompted policymakers to launch QE.

 

"Although Draghi said tapering scenarios were not discussed at this meeting and they didn't talk about what will happen in September, the ECB's tease about discussing tweaking stimulus sometime between September and November was enough to satisfy euro bulls," said BK Asset Management managing director Kathy Lien.

The euro was up more than one percent near 2030 GMT at $1.1631.

"On balance, we remain comfortable with our view for now that the ECB will announce a tapering plan at the next meeting on 7 September," Nomura said in a note.

"No clear message from the ECB and President Draghi on the tapering announcement in September may slow the momentum of euro appreciation, after recording a new high today. However, Mr Draghi's benign view on the recent euro appreciation should limit room for retracement, in our view."

Copyright AFP (Agence France-Press), 2017

Comments

Comments are closed.