The euro climbed today against the US dollar and the Great Britain pound after the European Central Bank left monetary policy unchanged and Italy avoided political crisis. The currency also pared losses versus the Japanese yen.
The ECB kept its main interest rate at the record low level of 0.5 percent. President Mario Draghi said in the press-conference that monetary policy will remain accommodative for a long time:
Looking ahead, our monetary policy stance will remain accommodative for as long as necessary, in line with the forward guidance provided in July. The Governing Council confirms that it expects the key ECB interest rates to remain at present or lower levels for an extended period of time.
Italian Prime Minister Enrico Letta won the confidence vote in the parliament, avoiding new elections. It is interesting to note that former Prime Minister Silvio Berlusconi supported Letta even though it was Berlusconi who has started the political turmoil in the first place.
EUR/USD rose from 1.3524 to 1.3585, trading near the highest level since February, and EUR/GBP climbed from 0.8349 to 0.8380 as of 17:41 GMT today. EUR/JPY was at 132.43 after falling from 132.51 to 131.40.
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