The euro is poised for its biggest quarterly decline as the European Central bank embarks on purchases of sovereign debt this week to spur inflation.
The shared currency has weakened about 11.5 percent this year, eclipsing the 10.6 percent decline during the credit crunch in the third quarter of 2008. The euro slumped to a 12-year low Wednesday as national central banks in the euro region were said to have purchased sovereign debt for a second day on Tuesday in their quantitative-easing program.
The euro was little changed at $1.0707 at 9 a.m. in Tokyo, after reaching $1.0669, the weakest since April 2003. The 19-nation currency slipped 0.1 percent to 129.46 yen, after earlier touching 129.23 yen, the lowest since August 2013. The Japanese currency rose 0.2 percent to 120.90 per dollar.
The ECB may see more capital leave the region than policy makers anticipated under its bond-buying program, pushing record low yields down even further, according to Deutsche Bank AG strategists George Saravelos and Robin Winkler.
Source : Bloomberg