Euro plunges to three-year lows as dollar demand jumps [Reuters]
CREDIT AGRICOLE UNSP/ADR (CRARY)
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Source: Reuters
Euro plunges to three-year lows as dollar demand jumps LONDON (Reuters) - The euro plunged to its lowest level in three years on Thursday as demand for dollar funding stayed high despite the recent burst of liquidity injection operations undertaken by central banks around the world. In volatile trading the euro EUR=EBS fell 1.6% to $1.0726 per dollar, its lowest since April 2017, as traders rushed to dump euro positions despite a fresh round of stimulus from the European Central Bank. The fall in the euro mirrored a sudden widening in FX implied borrowing costs for the U.S. dollar, indicating that investors were rushing to secure their short-dated funding. “There are still fears about refinancing of European debt in US dollars,” said Ulrich Leuchtmann, head of FX and commodity research. “The swap facilities should normally give access to euro funding. But I think this is not calming down the market. There’s a general assumption that there are a lot of US funding needs, not just in Eur
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