New York: The euro showed a modicum of strength on Thursday after the European Central Bank (ECB) refrained from further rate cuts but said it was committed to taking steps to fight off deflation.
ECB chief Mario Draghi pressed governments to get their finances and economies in order to steer the eurozone back to growth after a bank policy meeting that decided to begin a fresh asset-purchase program this month.
The news put a pause in the euro`s steady fall against the dollar since May. It pulled up to $1.2667 from $1.2624 late Wednesday.
"The US dollar is lower and the euro is recovering somewhat as the European Central Bank held its policy rates steady and provided limited details on its upcoming purchases of private-sector bonds," said Eric Viloria of Wells Fargo Securities.
Boris Schlossberg of BK Asset Management said that with US bond yields retreating, "the high yielders in foreign exchange have once again attracted bargain hunters."
"Indeed the dollar rally is unlikely to take true hold of the market until US rates begin to inch up," he said.
