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Forex - Dollar mixed vs. rivals after ECB sounds caution on rates

Published 04/07/2011, 10:57 AM
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Investing.com – The U.S. dollar was mixed against its major counterparts on Thursday, after the European Central Bank raised its interest rate for the first time in almost three years but dampened expectations for further rate hikes.

During U.S. morning trade, the greenback was up against the euro, with EUR/USD shedding 0.26% to hit 1.4292.

Earlier in the day, the ECB lifted its key lending rate to 1.25% from a record low of 1.0% but ECB President Jean-Claude Trichet said that the banks interest rate hike was not necessarily the first in a series.

The greenback was also higher against the pound, with GBP/USD slipping 0.08% to hit 1.6315.

Earlier Thursday, the Bank of England held interest rates steady at a record low of 0.5% as expected.

Elsewhere, the greenback was lower against the yen and the Swiss franc with USD/JPY shedding 0.52% to hit 85.06 and USD/CHF sliding 0.13% to hit 0.9177.

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 dipping 0.07% to hit 0.9600, AUD/USD climbing 0.19% to hit 1.0460 and NZD/USD shedding 0.25% to hit 0.7775.

Earlier Thursday, official data showed that Canadian building permits rose significantly more-than-expected in February.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.06%.

Also Thursday, the U.S. Department of Labor said jobless-benefit claims fell 10,000 last week to 382,000, the fewest since February 26.


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