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Forex - Dollar mixed as euro slips on profit taking ahead of ECB

Published 04/07/2011, 04:53 AM
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Investing.com – The U.S. dollar was mixed against its major counterparts on Thursday, while the euro slipped amid profit taking ahead of the European Central Banks expected rate increase later in the day.

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.27% to hit 1.4292.

The ECB looked almost certain to hike interest rates later Thursday, lifting its key lending rate to 1.25% from a record low of 1.0%.

The greenback was almost unchanged against the pound, with GBP/USD dipping 0.01% to hit 1.6331.

Later in the day, the Bank of England was to announce its official cash rate.

Elsewhere, the greenback was lower against the yen and the Swiss franc with USD/JPY shedding 0.25% to hit 85.27 and USD/CHF easing down 0.09% to hit 0.9180.

Earlier in the day, the Bank of Japan said it will offer JPY1 trillion in one-year loans for businesses hurt by the nation’s record earthquake and held the benchmark overnight rate in a range of zero to 0.1%.

Meanwhile, the greenback was lower against its Canadian and Australian counterparts but higher against its New Zealand cousin, with USD/CAD slipping 0.16% to hit 0.9591, AUD/USD climbing 0.38% to hit 1.0480 and NZD/USD shedding 0.33% to hit 0.7769.

Earlier Thursday, government data showed that Australian employment jumped by 37,800 in March, far exceeding expectations of a 22,000 rise. The rise in employment saw the jobless rate decline to its lowest level since December 2008.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.14%.

Later in the day, the U.S. was to publish a weekly report on initial jobless claims.

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