European Central Bank chief Mario Draghi pledged Thursday to do all that is needed to save the euro, as Italy faced a renewed rise in borrowing costs.
Speaking at an investment conference in London, Draghi said:
"Within our mandate, the ECB is ready to do whatever it takes to
preserve the euro. And believe me, it will be enough."
His comments came as Italy successfully sold 2.5 billion euros (3
billion dollars) of zero-coupon bonds but it was forced to pay the
highest borrowing costs for eight months, amid growing concern among
investors over the eurozone's deepening debt crisis.
However, Draghi said: "To the extent that the size of the
sovereign premia (borrowing costs) hamper the functioning of the
monetary policy transmission channels, they come within our mandate."
The ECB president's comments gave a major boost to the euro, which
jumped 0.9 per cent to 1.2260 in late morning trading.
After edging lower earlier in the day on downbeat earnings'
reports, European shares also rebounded in late morning trading with
the blue-chip eurozone eurostoxx 50 index gaining more than 2 per
cent to 2204 points.
