Euro Falls After ECB's Coeure Says Bank Will Frontload QE Buying

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The euro fell against other major currencies early Tuesday after the publication of comments by European Central Bank policy maker Benoit Coeure on the bond market. Coeure said he doesn't see the recent selloff in German bunds and other sovereign bonds as a "cause for concern", but as a reflection of a market correction, in remarks delivered in London on Monday. "It is the rapidity of the reversal that worries me more," he added. The ECB executive board member said the central bank will "frontload" its asset purchases in May and June -- that is, step up buying in those months -- to maintain its monthly average of 60 billion euros ($67.2 billion), given an expected drop in liquidity in the summer vacation period. "If need be, the frontloading may be complemented by some backloading in September when market liquidity is expected to improve again. The slightly higher purchase volume that market analysts may observe in the coming weeks is therefore unrelated to the recent episode of market volatility." The euro fell to $1.1169 after the comments, compared with $1.1317 late Monday in New York. Against the yen , it dropped to �134.15 from about �135.80, and against the pound , it was down to 71.57 pence from 72.29 pence.

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