The euro tumbled against the dollar and yen on Thursday after European Central Bank President Mario Draghi commented on the currency's recent rise.

While Dragi said the rise stems from fresh confidence in the Eurozone and the currency, he also noted inflationary risks, increasing expectations of a rate cut.

The euro fell to a trough of $1.3369, the lowest since January 25th before changing hands at $1.3392 after the ECB comments. Before the ECB the euro bought $1.3567. The central bank kept interest rates unchanged, as was widely expected.

The ECB President added that economic activity in the Eurozone should gradually recover in 2013, however on a cautionary note, he said there were more negative risks than positive.

The dollar index, which measures the greenback against a basket of six major currencies, stood at 79.724 compared to 79.728 on Wednesday.

Against the yen, the greenback traded at ¥93.41 from ¥93.37 before.

Sterling bought $1.5696 from $1.5659 after the Bank of England maintained its key lending rate at 0.5% and kept the size of its asset-buying programme at £375bn.





CJ

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