Euro falls after ECB denies bond-buying plan

AP News
Posted: Dec 08, 2011 3:36 PM
Euro falls after ECB denies bond-buying plan

The euro fell against the dollar Thursday after the European Central Bank president said there was no plan for large-scale government bond purchases as traders had hoped.

The euro fell to $1.3340 in late trading Thursday from $1.3394 late Wednesday.

European Central Bank President Mario Draghi's comments came after the bank cut its benchmark interest rate Thursday. His remarks sent stock indexes in the U.S. and Europe lower.

Traders are worried that European leaders will fail to agree on a solution to the region's debt crisis. European leaders are meeting Thursday and Friday in Brussels, but hopes for some type of solution were dashed by a German official who said a plan would not be agreed upon until Christmas.

In other trading Thursday, the British pound fell to $1.5642 from $1.5697. The dollar rose to 77.67 Japanese yen from 77.66 Japanese yen, to 0.9268 Swiss franc from 0.9242 Swiss franc and to 1.0202 Canadian dollar from 1.0108 Canadian dollar.