LONDON—The euro fell on Thursday after the European Central Bank kept its policy stance broadly unchanged, sticking to plans to slowly unwind stimulus.
The euro turned negative, falling 0.1 percent to $1.08820 as of 1210 GMT after the ECB confirmed its plans to cut bond purchases, commonly known as quantitative easing, this quarter, then end them at some point in the third quarter.
Interest rates will, however, only go up “some time” after the end of bond buys and they will be gradual, the ECB added.
Antje Praefcke, FX analyst at Commerzbank, said the market will not have a preference for the euro over the dollar until there is more clarity about whether the key rate will be raised in the fourth quarter.
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