The
euro continued to fall sharply against the dollar for the third straight
session, despite the intervention of the European Central Bank (ECB) and the
launch of the largest bond purchases worth 750 billion euros in an emergency
meeting late Wednesday.
The
EUR/USD pair hit a low of 1.0808 today, after opening the session at 1.0912, while
currently trading at 1.0821, close to a three-week low of 1.0800 yesterday.
The
ECB has tried to control the negative impact of the corona epidemic in the
eurozone, with most of Europe closing amid the outbreak of the coronavirus,
economic activity has reached an almost dead end.
This
pushed the markets in a state of continuous decline, which led to a deep
recession on an equal footing with the global financial crisis of 2008 and ask
questions about the tenacity of the euro area in times of pressure.
ECB
has come under considerable pressure to reduce borrowing costs for heavily
indebted countries such as Italy, prompting it to launch a new bond-buying
plan, bringing its planned purchases for this year to €1.1 trillion, with newly
agreed purchases alone accounting for 6 percent of eurozone GDP.
Christine
Lagarde ECB president said "exceptional times require extraordinary action
“, also adding that "there are no limits to our commitment to the euro. We
are determined to use the full potential of our authorized tools."
The
ECB said that bond purchases would continue until the "crisis phase"
of the epidemic ended and non-financial securities would be included for the
first time among eligible assets.