Investing.com - The euro slipped against the dollar and the yen on Tuesday following reports that the European Central Bank is considering corporate bond purchases and could decide on the matter as soon as December.
EUR/USD was down 0.28% to 1.2763, having retreated from session highs of 1.2840.
The drop in the euro came after Reuters reported that the ECB is examining plans to purchase bonds issued by companies, or corporate debt, to help shore up growth and boost slowing inflation in the euro area.
The report said the bank could activate the new stimulus plan as soon as December and start bond purchases by early next year.
The ECB began purchasing covered bonds on Monday in a bid to increase liquidity in the region.
The euro had gained ground against the dollar earlier in the session after third quarter growth data from China added to concerns over the outlook for the global economy.
China’s economy grew at an annual rate of 7.3% in the three months to September, slightly higher than the 7.2% forecast by economists, but slowing from 7.5% in the second quarter.
It was the slowest rate of growth since the first quarter of 2009, in the midst of the global financial crisis.
The lackluster data added to concerns that weaker global growth could act as a drag on the U.S. economy, dampening dollar demand.
The data came a day after Germany’s Bundesbank said the country’s economy barely grew in the third quarter. It said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
The single currency fell to session lows against the yen, with EUR/JPY down 0.39% to 136.39 and was also weaker against sterling, with EUR/GBP slipping 0.18% to 0.7904.