Euro slips, bond yields fall as ECB trims growth, inflation forecasts

LONDON: The euro weakened across the board and bond yields fell after the European Central Bank trimmed its growth and inflation projections for next year and said the balance of risk was tilted towards the downside.

The single currency fell as much as 0.3 percent against the dollar to $1.1339 and declined by a similar margin against the Swiss franc to 1.1269 francs.

Its biggest decline was against the British pound , falling half a percent at 89.53 pence, with relief that British Prime Minister survived a no-confidence vote also boosting the British currency.

German 10-year government bond yields dropped more than a basis point as Draghi spoke to trade flat on the day at 0.27 percent.

Other high-grade euro zone bond yields also fell 1-2 basis points.

Euro-zone stocks trimmed their gains slightly and were last up 0.1 percent after the drop in the euro boosted shares.