NEW YORK: The dollar remained higher against major currencies on Monday after European Central Bank President Mario Draghi discussed economic stimulus and fresh data showed Japan s economy slipping back into recession.
The dollar gained sharply on the euro as Draghi told the European parliament that the central bank is ready to step up its asset purchases to counter ultra low inflation that could erode already fragile growth, Dow Jones Newswires reported.
“The markets accelerated thanks to a speech by Draghi who adopted a tone perceived as very accommodating,” said IG France analyst Alexandre Baradez.
The dollar also picked up momentum against the yen after Japanese data showed the world s third-largest economy fell back into recession with a 0.4 percent contraction in the third quarter.
Last month, the Bank of Japan expanded its already huge monetary easing program, but the latest figures will lead to talk of further central bank measures to counter the downturn.
The poor economic data also bolstered speculation Prime Minister Shinzo Abe will delay another sales tax rise and call a snap election to fend off party rivals.
