Euro Hits Over 11-Year Low, Bonds Rise After ECB

New York: The euro fell to an 11 1/2-year low against the dollar as US and Eurozone bond prices rose on Thursday, after the European Central Bank (ECB) spelled out its 1 trillion-euro stimulus plan that begins next Monday.

Wall Street and European stock prices were supported by the ECB's latest effort to jumpstart the struggling Eurozone economy, which has been a drag on global growth.

ECB President Mario Draghi outlined the central bank's quantitative easing program at a press conference following a scheduled policy meeting. He left the door open for more bond purchases beyond September 2016.

"Mr Draghi is showing that the ECB is determined to continue until it gets the results it needs. They are perfectly aware that they cannot afford to fail," said Mauro Vittorangeli, a senior fixed income portfolio manager with Allianz Global Investors in Paris.

Brent oil prices hovered near $61 per barrel in the absence of a deal with world powers on Iran's nuclear program. An agreement could loosen restrictions on Iran to sell its oil, exacerbating a global supply glut.

The rise in US and European stock prices was limited by disappointing US data and the prospect of an economic slowdown in China.

Beijing announced a 7 per cent growth target for the year and signalled that the lowest rate of expansion for a quarter of a century is the "new normal".

The euro fell as low as $1.1005, its lowest since September 2003. It was last down 0.3 per cent at $1.1045 but up 0.1 per cent at 132.65 yen.

In contrast, the dollar strengthened to 11 1/2-year peak against a basket of currencies ahead of Friday's US payrolls report. The upcoming figures, if they show further improvement in wages and job growth, will reinforce an expectation that the Federal Reserve will raise interest rates later this year.

The dollar index was up 0.3 per cent at 96.230.

US and Eurozone bond prices rose. Benchmark 10-year US yield fell to 2.11 per cent, while its Italian and Portuguese counterparts and slipped to record lows.

On Wall Street, the Dow Jones industrial average was up 56.27 points, or 0.31 per cent, to 18,153.17, the S&P 500 rose 5.05 points, or 0.24 per cent, to 2,103.58 and the Nasdaq Composite climbed 23.23 points, or 0.47 per cent, to 4,990.37.

The pan-European FTSEurofirst 300 index was up 0.3 per cent, while Tokyo's Nikkei closed up 0.3 per cent.

The MSCI world equity index, which tracks shares in 45 nations, gained 0.3 per cent at 430.37.

Brent crude was last up 12 cents, or 0.2 per cent, at $60.67 a barrel. US crude was last up 25 cents, or 0.49 per cent, at $51.78 per barrel.

Spot gold prices rose $9.15 or 0.76 per cent, to $1,208.60 an ounce.