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Euro barely changed against U.S. dollar ahead of ECB decision

Euro barely changed against U.S. dollar ahead of ECB decision

The euro was barely changed against the U.S. dollar Thursday ahead of a meeting at which the European Central Bank was widely expected to raise its key interest rate.
The euro bought US$1.2711 in morning European trading, compared with US$1.2713 in New York late Wednesday. With the Bank of England also meeting Thursday, the British pound bought US$1.8861, barely below Wednesday's level of US$1.8864.
The dollar slipped to 117.66 Japanese yen from 117.89 yen.
The ECB's governing council was meeting in Paris Thursday. Many economists expected it to raise its key refinancing rate by a quarter point to 3.25 percent; bank president Jean-Claude Trichet signaled a likely raise when it last met in August.
Thursday's expected move would be the fifth quarter-point increase since last December.
Rising rates have boosted the dollar for the past two years as the U.S. Federal Reserve sought to keep growth from fueling inflation. Higher rates can bolster a currency by making certain types of investments more attractive.
However, slowing growth has convinced most economists that the Fed will keep interest rates unchanged for the rest of the year.


Updated : 2021-05-15 22:33 GMT+08:00