The euro tumbled on today as currency dealers reacted with disappointment to a decision by the European Central Bank to resist calls for an interest-rate cut.
The single European currency fell to $0.8848 from $0.8889 after the ECB said it was holding its key refinancing rate at 4.75 per cent.
"The market doesn't like this decision at all," said Bank of America economist Mr Jeremy Hawkins.
"The euro was already quite weak because people had already priced-in this kind of decision," he added.
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Dealers were now looking for clues from the ECB on whether cuts would be forthcoming in the near future.
"If ECB soundbites suggest euro-zone rate cuts are unlikely to come soon the euro could plumb new lows," Mr Hawkins said.
AFP