By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- The euro continued its fall on Friday,
trading at a 14-month low after the European Central Bank the prior
day cut interest rates and announced a "private QE" program in an
effort to fight off low inflation.
The shared currency (EURUSD) fell $1.2939 -- the lowest level
since July 2013 -- down from $1.2944 in late North American trade
on Thursday.
The euro weakness came after the ECB took markets by surprise on
Thursday and both cut key interest rates by 10 basis points and
said it would start buying asset-backed securities and covered
bonds in October. ECB President Mario Draghi said the measures were
taken to stimulate growth and boost consumer prices as inflation
has been below the central bank's target of close to, but below 2%
for a while.
In other currency action, the dollar (USDJPY) fell slightly
against the yen to buy Yen105.22, from Yen105.26 late Thursday in
New York. Later on Friday, investors will be watching August labor
market data from the U.S., with the nonfarm-payrolls report and
unemployment rate due at 8:30 a.m. Eastern Time.
The pound (GBPUSD) declined to trade at $1.6322, compared with
$1.6344 on Thursday.
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