FOREX TRADERS

[Jester_Vandalay]

ECB policy makers would reduce the rate for commercial lenders who park excess cash at the bank to minus 0.1 percent from zero, said the people privy to the discussions.

A negative ECB deposit rate is “one of last quivers they can draw from for weapons to combat sluggish economic growth,” Michael Mullaney, who oversees more than $10 billion as Boston-based chief investment officer for Fiduciary Trust Co., said yesterday by phone. “It is an admission that there’s definitely sluggish economic growth going on in the euro zone.”

Australia’s dollar, known as the Aussie, was steady at 93.29 U.S. cents following yesterday’s 1.1 percent drop. The currency, which has climbed 2.1 percent in the second half, is about 10 percent overvalued and a drag on economic growth, the International Monetary Fund said in a preliminary statement on the nation’s economy. The central bank should maintain loose policy settings, the IMF said.

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