| Dollar loses on euro on ecb rate hike { March 2 2006 } Original Source Link: (May no longer be active) http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20060302&ID=4162646http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20060302&ID=4162646
March 02, 2006 06:19 AM ET Euro Rises Slightly Against Dollar
FRANKFURT, Germany (AP) - The euro rose slightly against the U.S. dollar Thursday as anticipation mounted that the European Central Bank would raise interest rates.
The euro bought $1.1935 in morning European trading, up from $1.1921 in New York late Wednesday. The British pound dipped to $1.7485 from $1.7500.
The dollar was a little higher against the Japanese currency, rising to 116.10 yen from 116.07 yen as Japanese importers and investors bought the U.S. currency amid waning expectations for higher rates in Japan.
The ECB is widely expected to raise its key refinancing rate by a quarter-point to 2.5 percent when it meets Thursday. Higher rates can bolster a currency by giving higher returns on certain types of investments.
In the U.S., upbeat data on manufacturing activity released Wednesday helped lend some support to the dollar and added to expectations that the U.S. Federal Reserve will keeping raising the benchmark U.S. interest rate, currently at 4.5 percent.
© 2006 The Associated Press.
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