ECB inaction leaves euro flat against dollar

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VietNam News English - 70 month(s) ago 4 readings

The euro traded flat against the dollar on Thursday after the European Central Bank kept its key interest rate unchanged and gave no hints about changing policy direction in the coming months.


At 2100 GMT the euro was a touch lower against the greenback, buying $1.3149, compared to $1.3156 on Wednesday.

The main news of the day, the ECB policy meeting, brought a spike downward for the euro, immediately followed by a rebound well above levels seen on Wednesday.

But the rate quickly settled near the break-even line, as investors got no clear indication of whether the central bankers had more of an eye on slow growth or on the inflation threat in the eurozone.

There was no talk of looming price rises, but neither were there any hints of cutting rates to address weak growth, said Cedric Thellier at Natixis.

Instead, the key theme of the post-meeting press conference was "prevailing uncertainty," he said – leaving policy on hold for the coming months.

But that encouraged still some who hope for a rate cut eventually.

The yen weakened slightly, falling to 80.20 yen to the dollar from 80.13 yen, and to 105.45 yen per euro from 105.43

The British pound fell to $1.6177 from $1.6196.

The dollar gained to 0.9135 Swiss francs from 0.9130 francs. -- afp

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