Euro slides after ECB keeps interest rates down

After jumping to two-week highs yesterday (October 4th), the euro has fallen versus the majority of its forex trading partners this morning following the European Central Bank's (ECB) decision to keep rates at their historic 0.75 per cent low.

President of the ECB Mario Draghi said there was no discussion over this because he and his fellow policymakers were unanimous at their meeting at Brdo Castle outside of the Slovenian city of Ljubljana.

Mr Draghi is working hard to restore confidence in the single currency region and last month the ECB unveiled plans for an asset-buying scheme aimed at easing the debt crisis.

He stated the proposal had helped ease some of the tensions in the financial markets.

Mr Draghi even said debt-addled Spain and made progress in reforming its labour market and banking sector reforms, but noted significant challenges remain for the troubled Iberian nation.

At 09:00 BST, the euro was 0.1 per cent lower versus the dollar, sliding to €1 buying $1.300, while it was moderately weaker against the pound to €1 to £0.803.

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