By JESSICA MEAD The euro's relative stability against the dollar is deceptive. Against the likes of the Australian dollar or the Nordic currencies, the common currency is already close to record lows as investors gear up for euro-zone interest rates to hit a fresh all-time low later Thursday. The European Central Bank is widely expected to cut its main refinancing rate to 0.75% from 1% in a bid to give the ailing euro-zone economy a boost when it announces its policy decision at 1145 GMT. Although it has been trapped in a tight trading range against the dollar, the euro is now precariously close to its weakest levels against the Australian and New Zealand dollars since it was created in 1999. Meanwhile, it's trading at its worst levels against the Swedish krona since December 2000. On a trade-weighted basis, the euro is at its lowest since early 2003. And there's a good chance that a rate cut by the ECB later Thursday could push the common currency down to even more extreme levels against these smaller currencies. Although policy easing by the ECB would likely be perceived as supportive for the euro-zone economy and underpin overall market sentiment, currency strategists think it unlikely that the common currency itself will benefit. Instead, traders will focus on the lower interest rate and sell the euro to fund positive bets on currencies that have higher rates, including the Australian dollar and Swedish krona. Citigroup C +0.69% senior currency strategist Valentin Marinov said he thinks further easing by the ECB "could add to the cyclical headwinds for the single currency across the board, turning it into [an] even more attractive funding currency." Write to Jessica Mead at jessica.mead@dowjones.com

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