Euro rally stalls on ECB outcome

The euro fell against the dollar and a resurgent yen this morning, as cautious investors awaited outcomes of central bank policy meetings in Europe.

The euro fell against the dollar and a resurgent yen this morning, as cautious investors awaited outcomes of central bank policy meetings in Europe.

Thu, Feb 7, 2013, 00:00

The euro fell against the dollar and a resurgent yen this morning, while sterling wallowed at multi-month lows as cautious investors awaited outcomes of central bank policy meetings in Europe and Britain.

Both the European Central Bank and Bank of England are widely expected to keep interest rates unchanged later on Thursday, but any dovish hints could put both currencies under pressure.

Also overshadowing the meetings are incoming BOE Governor Mark Carney's testimony before the UK parliament as well as an Italian banking scandal, which is likely to be a distraction at the ECB's media conference.

"The overall trend for the euro hasn't changed, but it has paused," said Kimihiko Tomita, head of foreign exchange at State Street in Tokyo.

"The scandal stirs memories of past scandals, and there's the possibly that it, too, could become a bigger matter, so this is making some investors cautious," he said.

The euro moved away from a 34-month high of 127.71 yen hit yesterday, shedding 0.1 per cent to 126.45 yen, but pared losses from an Asian session low of 126.04 yen.

Against the dollar, the euro was nearly flat at $1.3523 , holding above this week's trough of $1.3458 plumbed Tuesday but still shy of a 15-month peak of $1.3711 set on February 1st.

Sterling traded nearly flat at $1.5668, not far above a 4-1/2-month low of $1.5630 set Tuesday.

Reuters

Sign In

Forgot Password?

Sign Up

The name that will appear beside your comments.

Have an account? Sign In

Forgot Password?

Please enter your email address so we can send you a link to reset your password.

Sign In or Sign Up

Thank you

You should receive instructions for resetting your password. When you have reset your password, you can Sign In.

Hello, .

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

Thank you for registering. Please check your email to verify your account.

We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.