Euro Trims Gains on Dollar
The euro pared gains against the dollar, easing after the European Central Bank called “misleading” a news report that it was planning to cap government bond yields in the euro zone.
The euro had already weakened after the Bundesbank, Germany’s central bank, reiterated its opposition to a resumption of bond purchases by the ECB—a policy prescription some European leaders say invites moral hazard, while many investors see it as the best solution to the region’s debt crisis.
The euro dipped as low as $1.2294 but traded at $1.2343 in recent action, up from $1.2335 late Friday. The common currency moved as high as $1.2368 in European trade.