How the strong euro is hindering the ECB’s attempts to boost eurozone inflation

The European Central Bank announced on Thursday a €500 billion ($600 billion) increase of its pandemic-focused asset-buying program to help support the eurozone economy hit by the COVID-19 pandemic’s second wave, but the strengthening of the euro against the dollar complicates its long-elusive goal of boosting inflation.

• The euro is up 13% against the dollar since its year’s low in March, and is approaching five-year highs level of March 2018.

• The ECB’s official mission is to maintain inflation in the eurozone “below but close” to the 2% level, but it has consistently undershot the target since 2014. Inflation sank in November to minus…