LONDON, Sept 11 (Reuters) - The euro fell below $1.20 and German bond yields briefly dipped on Monday after comments from European Central Bank board member Benoit Coeure that monetary policy is likely to remain more accommodative for longer.
Coeure said that given the persistent challenges faced by the ECB in raising consumer prices, its definition of ‘medium-term’, the time horizon required to meet its inflation target, will be longer than usual.
The euro extended losses after his comments and fell as much as 0.4 percent on the day to trade at $1.9935 after his comment.
Germany’s 10-year bond yield briefly touched a day’s low at around 0.32 percent while stock markets were broadly unaffected. (Reporting by the London Markets Team; Editing by Dhara Ranasinghe)