The euro was 0.3 percent from a seven-week high with the European Central Bank forecast to keep interest rates unchanged today. Australia’s dollar climbed versus its major peers as jobs data beat economist expectations.
ECB President Mario Draghi stepped up rhetoric against the currency’s gains last month as the euro gained the most in the past year among 10 peers tracked by Bloomberg Correlation Weighted Indexes after the pound and Swiss franc. Federal Reserve Chair Janet Yellen will speak before a Senate Budget Committee today. Australia’s dollar pared yesterday’s decline versus the greenback after a report showed employers added more jobs than forecast and the unemployment rate was steady.
“Markets in general just don’t believe that Draghi is willing to follow through at this point and they’re getting impatient,” said Emma Lawson, a Sydney-based senior currency strategist at National Australia Bank Ltd. “The currency market may be really wanting to call his bluff and if the ECB does nothing, which is what we expect, we may see a run up in euro-dollar close to $1.40.”
The euro was little changed at $1.3912 as of 11:11 a.m. in Tokyo after falling 0.1 percent yesterday. It touched $1.3951 on May 6, the strongest level since March 13. The common currency slipped 0.1 percent to 141.61 yen.
Australia’s dollar rose 0.2 percent to 93.45 U.S. cents and gained 0.1 percent to 95.15 yen. The dollar bought 101.81 yen following a 0.2 percent gain to 101.90 yesterday.
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