Summary The euro Tuesday fell against the dollar as ECB official discusses stimulus.
NEW YORK (AFP) - The euro Tuesday fell against the dollar and some other leading currencies after a key European central banker expressed support for monetary stimulus.
Ewald Nowotny, a governor of the Austrian central bank and a member of the European Central Bank Governing Council, highlighted the need for policy makers to tackle the threat of deflation.
"It is important that one takes deflation risks seriously and addresses them," Novotny said, according to Bloomberg News. "We shouldn t wait too long with a reaction."
Nowotny said the ECB panel is considering a number of stimulus measures, including asset purchases, Bloomberg said.
Analysts said the remarks were a sign the ECB may act when it meets on January 22, in part because Nowotny is not known for being particularly interventionist.
"The prospect of Quantitative Easing has and should continue to keep euro under pressure," said Kathy Lien, managing director at BK Asset Management.
The dollar retreated against the yen, even as it rose on the euro, indicating news about the US did not drive its performance, Lien said.
That should change Wednesday, when the widely-watched report on US retail sales will drive trade. A disappointing retail sales figure would push the greenback lower against the yen, Lien predicted.
