By Virginia Harrison SYDNEY (MarketWatch) — The dollar inched up against the euro in Asian trading Thursday, as investors eyed a rate decision from the European Central Bank later in the day, as well as the outcome of a summit of European leaders on the sovereign-debt crisis. The euro EURUSD -0.08% traded at $1.3399, down from $1.3405, in North American trade late Wednesday. The dollar index DXY +0.01% , which measures the U.S. unit against a basket of six major rivals, traded at 78.470, little moved from the 78.476 level in North American trade late Wednesday. The moves came ahead of key meetings in Europe, which have held investor focus throughout the trading week. The European Central Bank (ECB) was expected to cut the key lending rate by 25 basis points when it meets in Frankfurt later Thursday, and may also announce additional liquidity measures. Read more on what to expect from the ECB. Separately, European leaders were due to meet in Brussels on Thursday for a two-day summit billed as crucial for the debt-stricken region. German Chancellor Angela Merkel and French President Nicolas Sarkozy have proposed broad treaty changes that would toughen fiscal rules and impose automatic sanctions on countries that violate budget limits. “The euro looks range-bound ahead of key events,� said Mitul Kotecha, head of global FX strategy at Credit Agricole. “There will be plenty of attention on the ECB to determine whether they will give a little more ground and provide further assistance to the euro-zone periphery,� Kotecha said. “If ... the ECB hints at intensifying its securities-market purchases of euro-zone bonds this will likely bode well for the euro,� he said. The Bank of England was also slated to meet Thursday and was expected to leave its monetary policy unchanged. The British pound GBPUSD -0.02% edged up to $1.5703, from $1.5701 in North American trade late Wednesday. Against the Japanese currency, the dollar USDJPY -0.04% inched down to ¥77.64, from ¥77.68 in North American trade late Wednesday.

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