Euro turns down as ECB's Draghi talks ( 10_YEAR 2_YEAR 30_YEAR TBT TLT BND AGG DXY UUP UDN FXE FXY EURUSD ) (by Deborah Levine)

NEW YORK (MarketWatch) -- The euro turned down against the U.S. dollar Thursday after European Central Bank President Mario Draghi started his first press conference as head of the central bank on a sour note, citing intensifying downside risks for the European economy. He also said inflation, while elevated, will drop next year and its nonstandard policy measures are temporary. The ECB unexpectedly cut its benchmark interest rate earlier. The euro (cur_eurusd) turned down to $1.3709, after topping $1.38 in morning trading and from $1.3745 in North American trade late Wednesday. The dollar index (dxy) which measures the U.S. unit against a basket of six major currencies, traded at 77.185, up from 76.717 and 77.096 Wednesday.

Draghi: ECB cut rates after economic data worsened (by Polya Lesova)

LONDON (MarketWatch) -- European Central Bank President Mario Draghi said on Thursday that the decision to cut interest rates was unanimous and was made after downside risks to the euro-zone economic outlook materialized in recent data. He also said the ECB never pre-commits on future rate moves. Draghi also said that while inflation remains elevated in the euro zone, it will decline below 2% over the course of 2012.

Draghi: ECB bond-buying program is temporary (by Polya Lesova)

LONDON (MarketWatch) -- European Central Bank President Mario Draghi said on Thursday that the governing council hasn't been focusing on elevated Italian bond yields in its discussions. He also said that the ECB's bond-buying program is temporary. "It's temporary, it's limited and it's justified by monetary-policy considerations," Draghi said about the program.

ECB's Draghi: Euro-member exit is not in EU treaty (by Polya Lesova)

LONDON (MarketWatch) -- European Central Bank President Mario Draghi said on Thursday that an exit of a member from the euro area is not in the treaties governing the European Union. "It's not in the treaty," he said in response to a reporter's question. "We are all bound by the treaty. We cannot really conceive of situations which are not envisaged in the treaty."