By William L. Watts, Lisa Twaronite and Sam Mamudi, MarketWatch
NEW YORK (MarketWatch) — After rising earlier in the day, the European single currency slipped slightly Thursday after the European Central Bank said it was holding rates at record-low levels.
The euro (EURUSD 1.3131, -0.0005, -0.0381%) had been rebounding off two-month lows versus the dollar set earlier this week, temporarily topping the $1.32 level. But lately it was trading at $1.3139, up a fraction from $1.3129 in North American trade late Wednesday.
The ECB kept its key lending rate at a record-low 1%. Read about the bank’s decision.
ECB President Jean-Claude Trichet’s said at his monthly post-meeting news conference that the ECB will continue to provide special liquidity measures to commercial banks through the first quarter of 2011.
The fixed-rate loans have provided important support for euro-zone banks that have trouble securing funding on the interbank market.
Trichet also said that the ECB’s program of distressed sovereign bond buying is “ongoing,” but he would not comment on speculation that the bank would boost the purchases.
At the latest, the British pound (GBPUSD 1.5550, -0.0071, -0.4545%) traded at $1.5518 versus the dollar, down from $1.5612 late Wednesday.
The dollar index (DXY 80.68, -0.04, -0.05%) , a measure of the U.S. unit against a basket of major rivals, traded at 80.987, up from 80.734 in late North American trade Wednesday.
Against the Japanese yen, the dollar (USDYEN 84.2000, -0.0200, -0.0238%) rose after slipping earlier in the day, buying ¥84.23, up from ¥84.16. See real-time currency quotes and tools.
