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The euro fell below $1.30 for the first time in almost a month as European Central Bank President Mario Draghi said monetary policy will remain stimulative, dimming the relative allure of assets denominated in the currency.
The 17-nation currency has declined 2.3 percent against the greenback since Federal Reserve Chairman Ben S. Bernanke said on June 19 the U.S. central bank may begin paring back bond purchases this year.
The ECB's monetary policy "will stay accommodative for the foreseeable future," Draghi said in a speech at the French National Assembly in Paris. "We have an open mind about all other possible instruments that we may consider proper to adopt," he said, adding that an exit remains "distant."
The Frankfurt-based ECB cut its benchmark interest rate to a record-low 0.5 percent in May after six consecutive quarters of contraction in the 17-nation currency-bloc economy.
U.S. gross domestic product rose at a revised 1.8 percent annualized rate in the first quarter, down from the previous estimate of 2.4 percent, the Commerce Department said. The first quarter rate was projected to hold at 2.4 percent, according to a Bloomberg News survey of economists.
Reports yesterday showed U.S. durable goods orders rose more than forecast in May and consumer confidence for June exceeded projections.
The pound fell versus the greenback as Bank of England policy maker David Miles renewed his call for more asset purchases.
A "slight expansion" of the bank's quantitative-easing program would be helpful, he told a conference in London today.
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