RTTNews - The euro edged higher against the pound and was little-changed against the dollar and yen on Thursday in New York following interest rate decisions from the European Central Bank and Bank of England.
The common currency recovered early losses against the dollar, rebounded further versus the pound and remained stable with the yen.
In the Eurozone, the central bank retained the interest rate on the main refinancing operations at 1% after cutting the rate by a quarter point in May from 1.25%. The decision matched economists' expectations. The ECB has lowered interest rates by a total of three and a quarter percentage points since early October 2008.
In his post-decision press conference, ECB president Jean-Claude Trichet said economic activity in the euro will decline less in the second half of 2009.
In recent days, the euro had eased away from a five-month high against the dollar and 7 1/2-month best versus the yen. The euro had strengthened against its lower-yielding counterparts over the last few weeks on higher risk appeal with global stocks on the mend.
The euro moved near 1.4180 in early-afternoon trading with the dollar after earlier hitting below 1.4100. Early this week, the common currency hit as high as 1.4338.
The euro was slightly higher versus the yen, moving near 137.00 in the early afternoon. The single currency has been stable this week, briefly spiking to a fresh multi-month high of 138.00 early on Wednesday.
Japan's corporate capital spending plunged 25.3 percent on year in an all-industry basis in the first quarter of 2009, a report released by the Ministry of Finance today.
Meanwhile, the euro has climbed to a weekly high against the British pound, recovering some of its recent slump. This compares to the multi-month low of 0.8574 from earlier in the week.
The Bank of England kept its Bank Rate unchanged at a record low of 0.5% and decided to continue with its asset purchase scheme worth GBP 125 billion.
Eurozone real gross domestic product will contract between 5.1% and 4.1% in 2009, Trichet said citing the June 2009 Eurosystem staff macroeconomic projections. GDP growth will be between negative 1% and positive 0.4% in 2010, he added.
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