The European Central Bank yesterday revealed it had bought €16.5bn of eurozone government bonds as part of the global rescue plan, amid growing concern among investors that the intervention is not yet big enough to stabilise debt markets.
The euro fell to its weakest level against the US dollar since April 2006 in spite of the €750bn international support package and central bank intervention.
The scale of the ECB's intervention was at the low end of analysts' expectations. But the move has broken new ground for the guardian of the euro currency, which had previously shied away from buying government bonds outright.
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