(MENAFN- AFP) The euro hit its lowest level for more than 11 years Thursday, with investors awaiting key updates from the European Central Bank over its latest stimulus programme.
The euro slid to $1.1026 -- the lowest level since September 2003. It later stood at $1.1046, down from $1.1080 late in New York on Wednesday.
"That advance for the dollar by default is of course in part due to the ECB," said Derek Halpenny, currency analyst at Bank of Tokyo-Mitsubishi UFJ.
The European Central Bank, meeting in Cyprus on Thursday, is set to update its economic forecasts and reveal details of its new bond purchase programme.
Greece will also be high on the agenda of the ECB's decision-making governing council, following the recent eurozone deal to extend aid to the debt-wracked country, experts said.
After revealing its plans for quantitative easing (QE) in January, the ECB will focus on fleshing out the details of that stimulus programme rather than announcing any new measures, analysts said.
"Investors continue to trade cautiously as we approach the business end to the week, with today bringing the latest monetary policy decisions from the Bank of England and the ECB and more importantly, details on the new 1 trillion euro quantitative easing program from the latter, which is due to begin this month," said Craig Erlam, senior market analyst at broker Oanda.
In stock market trade, London's benchmark FTSE 100 index of top companies climbed 0.28 percent to 6,938.57 points, also before the Bank of England gives its latest interest rate decision..
Frankfurt's DAX 30 gained 0.45 percent to 11,441.33 points and the CAC 40 index in Paris won 0.56 percent to 4,945.13 points compared with Wednesday's close.
"Central banks have been the driving force behind the booming stock markets over the past few years and now it is the ECB's turn to flood the financial system with money," noted David Madden, market analyst at IG trading group.
The massive central bank purchases reduce returns on bonds for investors, who then instead invest in stocks.
"Eurozone equity markets are highly dependent on the stimulus package from the ECB and traders will be looking for (central bank head) Mario Draghi to give the green light signalling the next round of buying."
Focus was also on China, which Thursday lowered its 2015 economic growth target to "approximately seven percent", scaling down expectations in the face of "formidable" difficulties for the world's second-largest economy after its decades-long boom.
The figure announced by Premier Li Keqiang is the lowest since a similar goal in 2004 and comes after China's gross domestic product (GDP) expanded 7.4 percent in 2014, the slowest pace in 24 years. Last year's target was "about 7.5 percent".
The cut was widely expected by economists and reflects the reality of a multi-year slowdown in the Asian giant that has seen it come off regular annual double-digit expansions.
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