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New York, Feb 18, 2016 (AFP) -The euro continued its week-long slide against the dollar Thursday after minutes from the European Central bank's January meeting showed policymakers discussing possible "preemptive" stimulus.
The minutes made clear that fresh easing action was possible at the ECB's next meeting on march 10, but that no decision was made as the central bankers study economic data and market volatility.
The suggestion of acting preemptively was made in reference to a climate of emerging downside risks in the economy, which could describe the situation since the beginning of the year.
The euro slipped to $1.1105, and the yen strengthened against both the dollar and the euro.
IHS Global Insight chief European economist Howard Archer said they expect a further cut in the ECB's already negative deposit rate in March.
"Just how much stimulus the ECB delivers in March much could yet depend on how oil prices and inflation expectations develop over the next few weeks, and whether global economic uncertainties and financial market turmoil show any signs of easing," he said in a client note.
"While we are not surprised to see the euro continue to fall, the reaction was larger than we anticipated since everyone knew the minutes would be dovish," said Kathy Lien of BK Asset Management.
Meanwhile, China's yuan edged higher to 6.579 per dollar as it continued to fluctuate in the wake of Monday's huge market intervention by the People's Bank of China to beat back speculation on a devaluation.
2200 GMT Thursday Wednesday
EUR/USD 1.1105 1.1126
EUR/JPY 125.76 126.89
EUR/CHF 1.1030 1.1042
EUR/GBP 0.7746 0.7786
USD/JPY 113.24 114.05
USD/CHF 0.9933 0.9925
GBP/USD 1.4335 1.4289
