Euro at 3-week low

The euro slid to a three-week low against the dollar and fell versus the yen yesterday after European Central Bank president Mario Draghi highlighted downside risks to eurozone growth and said monetary policy would stay accommodative.

The euro briefly pared losses against the dollar after final data showed US gross domestic product growth was more tepid than previously estimated in the first quarter, but the impact on currencies was fleeting. US growth was held back by moderate consumer spending, weak business investment, and declining exports.

The ECB remained the key focus. Draghi said the economic recovery in the eurozone would be gradual but fragile, in line with his comment, a repeat of one made the previous day, that the ECB was nowhere near exiting its accommodative monetary policy.