(Reuters) The euro fell to a two-month low on Thursday after European Central Bank President Mario Draghi said the bank would pursue its tightening policy despite fears about the monetary union’s economic and political future.
The single currency rose immediately after the central bank’s rates announcement, then began to sell off “once Draghi started speaking again and highlighted the risks around Italy and Brexit,” said John Doyle, vice president of dealing and trading at Monex, Inc.
The euro’s decline was the primary reason for Thursday’s jump in the dollar index, said Doyle. It was amplified, however, by the rise in U.S. stocks on Thursday as Microsoft Corp’s (MSFT.O) strong earnings helped Nasdaq-listed companies stage a rebound from the tech-heavy index’s worst decline since 2011 in the previous session.
