January 25, 2018 / 2:13 PM / 3 months ago

Euro powers through $1.25 after Draghi comments

LONDON, Jan 25 (Reuters) - Euro rose past the $1.25 level on Thursday, up one percent on the day, after European Central Bank President Mario Draghi said the central bank did not target foreign exchange rates when asked about the strength of the single currency.

The euro hit a high of $1.2538, its highest level since Dec. 2014.

“Euro (has broken) higher on no verbal intervention,” said Mizuho’s head of hedge fund FX sales, Neil Jones. “We were looking for it but we didnt get it. It appears Mnuchin’s comments were more verbal intervention than Draghi’s.”

The euro also rose 0.3 percent against sterling. The pound hit a fresh 19-month high at $1.4346 as the dollar sold off amid the euro rally.

In bond markets, German government bond yields rose to their highest levels in over half a year as European Central Bank chief Mario Draghi said euro zone inflation should rise in the medium term.

Reporting by London Markets Team; Writing by Tommy Wilkes

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