Euro extends losses as ECB cuts growth expectation

The euro extended losses against the US dollar today after ECB President Jean-Claude Trichet lowered growth expectations for 2009.

Mr Trichet said the European Central Bank had lowered its 2009 growth forecast for the euro zone to somewhere between a contraction of 1 per cent or zero growth from the range of 0.6 per cent to 1.8 per cent growth projected in September.

Mr Trichet was speaking after the European Central Bank cut interest rates by 75 basis points to leave its benchmark rate at 2.5 per cent.

The euro was down against the dollar at $1.2605 compared with the $1.2625 it traded at before Mr Trichet began speaking. The euro is down 0.9 per cent on the day.