The euro fell against major currencies after the European Central Bank (ECB) revealed details of its asset-backed securities (ABS) purchase program and covered bond purchase program. The central bank hopes these measures will boost lending and combat deflationary pressures within the Eurozone.

Details of the Asset Purchase Program

The ECB’s asset purchase program will involve buying asset-backed securities and covered bonds. The goal is to increase the money supply and lower borrowing costs for businesses and consumers. This, in turn, should encourage investment and spending, leading to higher economic growth.

Impact on the Euro

The announcement of the program triggered an immediate sell-off of the euro. Market participants anticipate that the increased money supply will devalue the currency. The euro’s decline could benefit Eurozone exporters by making their products more competitive in international markets.

Expert Opinions

Analysts have expressed mixed opinions on the effectiveness of the ECB’s new measures. Some believe that the program is a necessary step to address the Eurozone’s economic challenges. Others are skeptical, arguing that it may not be sufficient to overcome structural problems and weak demand.

Further Developments

The ECB is expected to provide further details on the implementation of the asset purchase program in the coming weeks. Market participants will be closely monitoring these developments to assess the potential impact on the euro and the Eurozone economy.