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Euro marginally lower against U.S. dollar

Euro marginally lower against U.S. dollar

The euro was marginally lower against the U.S. dollar Wednesday as markets awaited U.S. economic data, comments by the Federal Reserve chairman and a European Central Bank decision on interest rates.
The euro bought US$1.2720 in morning European trading, down from US$1.2727 in New York late Tuesday.
The British pound slipped to US$1.8867 from US$1.8872, while the dollar was up to 117.94 Japanese yen from 117.89 yen.
The dollar had regained a little ground Tuesday after slipping against the euro on disappointing U.S. economic data.
Slowing growth could reduce pressure on the Federal Reserve to raise interest rates. Rising rates have buoyed the dollar for the past two years. They can bolster a currency by making certain types of investments more attractive.
Investors were looking ahead to comments from Fed officials _ including Chairman Ben Bernanke _ expected on Wednesday for any hints on the central bank's future course. The Commerce Department also releases its report on August factory orders on Wednesday.
Falling oil prices are "supporting beliefs that the U.S. economy may just be able to find a little more upside and thereby prevent too hard a landing as the slowdown continues, but data due out as we move toward the weekend break may have the ability to shatter any thoughts such as these," said David Jones, chief markets analyst at CMC Markets.
Rising interest rates elsewhere also may weigh on the dollar.
The ECB is widely expected to lift its key interest rate when it meets Thursday. It would be the fifth such move since the bank started adjusting rates in December 2005.


Updated : 2021-05-14 20:03 GMT+08:00