MW: Dollar slips against most rivals, but gains on yen
By Lisa Twaronite, MarketWatch
TOKYO (MarketWatch) -- The dollar fell against most major rivals during Asian trading hours Thursday, as gains in most equities markets prompted investors to seek higher-yielding, and often more volatile, currencies.
The dollar index (DXY 74.36, -0.31, -0.41%) , which measures the U.S. currency against a trade-weighted basket of six major rival currencies, slipped to 74.351, from 74.648 in late North American trading Wednesday.
But the dollar gained on its even-lower-yielding Japanese counterpart, rising to 87.80 yen from 87.45 yen Wednesday.
The euro rose to $1.5117, up from $1.5040 late Wednesday, ahead of a European Central Bank regular policy meeting later in the session.
The Frankfurt-based ECB, which oversees monetary policy for the 16-nation euro zone, is scheduled to announce the outcome of its Governing Council meeting at 1:45 p.m. local time, or 7:45 a.m. Eastern.
Since the bank is seen as virtually certain to leave its key lending rate unchanged at a record low 1%, attention will be focused on Jean-Claude Trichet's monthly news conference at 8:30 a.m. Eastern.
Trichet is expected to signal that the bank is going slowly as it prepares to unwind hundreds of billions of euros in loans it has provided the financial system. The ECB president is expected at the same time to take pains to reassure traders that the central bank won't be lifting interest rates anytime soon, economists said. See preview of ECB meeting.
On Wednesday, the dollar moved up from a 15-month low versus the euro after the U.S. Federal Reserve's Beige Book noted "dismal" conditions in commercial real estate and weak labor markets, increasing the appeal of safer, lower-yielding currencies. See Wednesday's Currencies report.
