The common currency Euro held near to a 2-month high against the U.S. Dollar during the Asian trading session as Wednesday’s rally continues to broadcast investor hopes that the ECB might have a new weapon against the Eurozone debt crisis. The European Central Bank will be making an announcement later today and the ECB head Mario Draghi is expected to offer details as to how the asset purchase program would play out.
Market players are expressing their confidence in Draghi’s assertion that the central bank would do whatever they deem necessary to ensure the Euro’s survival. The ECB is expected to put aside seniority status on sovereign debt purchases, and a vote of the bank’s governing council will confirm that readiness.
As reported at 1:46 p.m. (JST) in Tokyo, the EUR/USD pair was trading at $1.2621, close to the 2-month peak of $1.2638 that was established last week, and a near 5% recovery from the $1.2042 low struck in late July. The U.S. Dollar Index, a gauge of the greenback’s strength relative to a weighted basket of major currencies which include the Euro, fell to 81.782 .DXY, close to a 3½-month low struck last week.