The euro edged higher against the dollar in Asia on Thursday following overnight falls, ahead of the European Central Bank's policy meeting at which a rate hike is expected, dealers said.
The euro fetched $1.4324 in Tokyo afternoon trade against $1.4314 in New York late Wednesday. The European common currency edged up to 115.92 yen from 115.83 yen. The dollar was slightly higher at 80.93 yen against 80.88 yen.
Despite the euro's marginal gains, 'sentiment remains bearish for the euro due to renewed concerns about peripheral eurozone countries,' Hideki Hayashi, global economist at Mizuho Securities, told Dow Jones Newswires.
The ECB is on Thursday expected to raise interest rates for the second time this year, by 0.25 percentage points to 1.5 per cent with the aim of curbing inflation, dealers said.
Bank president Jean-Claude Trichet is to hold a news conference after the meeting.
'The biggest focus today is on whether Trichet would indicate further rate hikes later this year,' said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.
If Trichet stresses ongoing upside inflationary risks, that could buoy the common currency, Hideki Amikura, foreign exchange dealer at Nomura Trust and Banking, told Dow Jones Newswires.
Source : New Age
