President of the European Central Bank Mario Draghi comes to a news conference following a meeting of the governing council in Frankfurt, Germany, Thursday, Sept. 7, 2017. (AP Photo/Michael Probst)
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The euro climbed past $1.2050 despite a verbal warning on its strength from ECB head Mario Draghi Thursday, as the central bank flagged it was preparing to scale back its 2.3 trillion euro ($2.75 trillion) stimulus program. Traders were left waiting after the ECB's initial statement reaffirmed its ultra-easy policy stance, but leapt on the euro as Draghi said the bank's staff were looking at how to wind down its 60 billion-euro-a-month buying program.The euro jetted as high as $1.2059 from just under $1.1975 before Draghi spoke, while European stocks saw their day's gains halved at the prospect of ongoing euro strength.The 13 percent surge of the euro already this year is impacting its sub-target inflation outlook, forecasts for which were trimmed by the ECB Thursday.Ten-year paper was hovering at 2.087 just off the previous day's 10-month low of 2.054 percent.Italy's 10-year yield fell to 1.958 percent, its lowest since late June, with traders soothed by a comment from Draghi that the sequencing of the scale back had been set.
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