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2015.01.1321:18:39UTC+00Euro glides to 9-year low on bets ECB to start bond buying program

The euro plunged to a nine-year trough as officials ignited speculation the European Central Bank might start obtaining sovereign bonds as early as next week to fend off deflation.

The 18-nation currency declined Greek Finance Minister Gikas Hardouvelis said the country might exit the eurozone if the opposition party would win in the elections and a new Syriza-led government would not be able to seal a deal with international lenders right after the poll.

Several factors have pressured the currency, “including prospects of central-bank policy action and concerns regarding political developments in Greece,” said Sireen Harajli, Strategist at Mizuho Bank Ltd.

The shared currency erased 0.5% to $1.1773 and hit $1.1753, the lowest since 2005. It also tumbled 0.9% to ¥138.83. 

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