The euro hit a fresh one-year low on Monday, as heightened worries about the crisis in Ukraine kept the currency on the defensive ahead of a European Central Bank policy meeting later this week. The euro fell as far as $1.3119 EUR=, reaching lows not seen since early September 2013. It last traded at $1.3125, down 0.1 percent on the day.
Ukrainian President Petro Poroshenko warned a “full-scale war” was imminent if Russian troops continued an advance in support of pro-Moscow rebels as Europe and the United States threatened Russia with new sanctions.
Analysts said the risk to euro zone growth posed by the Ukraine conflict and stubbornly low inflation should keep the pressure on the European Central Bank to provide further stimulus at some stage, if not this week.
Reuters
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