Dollar mixed ahead of ECB decision, jobs report

The dollar was mixed in Asian trade Thursday as players took to the sidelines ahead of European interest rate decisions and a pivotal US labour market report, dealers said.

The dollar slipped to 116.49 yen in Tokyo afternoon trade, down from 116.73 late Wednesday in New York.

The euro was steady at 1.4086 dollars after 1.4089 while easing to 164.06 yen from 164.49.

Attention was focused on the European Central Bank’s interest rate decision due later Thursday.

The ECB was expected to keep rates on hold at 4.00 percent, while the Bank of England was seen pegging rates at 5.75 percent in light of recent financial market volatility. Markets will be listening to hear whether ECB chief Jean-Claude Trichet provides any clues about future shifts in monetary policy.

Trichet has echoed other finance officials in Europe in recent days by signalling concerns over the strength of the euro, which hit another all-time high against the dollar at the start of this week.

“If the ECB expresses its concerns over the stronger euro, it could move the market,” said Shigeru Nakane, senior client manager at Resona Bank.

AFP