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FOREX-Dollar near 2009 lows vs euro, ECB and BoE eyed

Published 08/05/2009, 08:42 PM
Updated 08/05/2009, 08:45 PM

* Sterling holds firm near 9-mth peak before BoE

* Economists split on if BoE will boost asset buying scheme

* NZ dlr dips after Q2 jobless rate jumps more than expected

By Satomi Noguchi

TOKYO, Aug 6 (Reuters) - The dollar was steady near this year's lows against the euro on Thursday with investors bracing for policy decisions by the Bank of England and the European Central Bank later in the day.

The dollar fell versus the euro on Wednesday to its lowest point since December after data showing U.S. private employers cut more jobs last month but at the slowest pact since October, offering a glimmer of hope the labour market is stabilising.

Sterling held firm near a over nine-month peak against the dollar struck the previous day ahead of the BoE's expected decision and announcement on interest rates and its quantitative easing programme later on Thursday.

Economists are split on whether the BoE will inject more money into the economy by extending its asset purchases at the end of two-day policy meeting at 1100 GMT, although recently brighter British data is seen reducing such chances.

The euro was little changed from late New York trade at $1.4411, staying in sight of $1.4448 hit on trading platform EBS the previous day, its highest since December.

The ECB appears certain to keep its interest rate at a record low of 1 percent as it waits to see the impact of efforts so far to revive the economy and credit flows. The ECB policy decision is expected at 1145 GMT followed by a news conference by ECB President Jean-Claude Trichet.

The pound was steady at $1.6991 after reaching as high as $1.7044 on EBS the day before, its highest since late October.

Sterling kept the strength drawn from Wednesday's data showing strength in the British service sector and industrial production, followed by an upbeat forecast by the Royal Institution of Chartered Surveyors that British house prices will end this year slightly higher than last year, scrapping its previous prediction of a 10 percent fall.

The dollar was steady against the yen at 94.88 yen, and the euro was little changed at 136.69 yen.

The New Zealand dollar fell after data showing the country's jobless rate climbed more than expected to 6.0 percent for the second quarter, a nine-year high, backing views its central bank will keep interest rates at a record low well into 2010. (Editing by Michael Watson)

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