Euro Drops to Its Lowest since May 2020 as ECB Holds Policy Unchanged

The euro, the world’s second most traded currency, fell to its lowest level against the dollar since May 2020 following confirmation by the European Central Bank that its current plans to maintain all official rates unchanged in the coming months were appropriate.

On Thursday, the currency dropped as much as 1 percentage points to 1.0782, smashing a previous low set last month as Russia’s invasion of Ukraine intensified.

The European Central Bank will begin raising interest rates “some time” after it completes its net asset purchase program, ECB President Christine Lagarde stated following Thursday’s meeting.