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Dollar Mixed as Euro Lifted by ECB Bond Buying

Dollar Mixed as Euro Lifted by ECB Bond Buying

Write: Stoddard [2011-05-20]

The U.S. dollar traded mixed against major currencies in late New York trading on Thursday as the euro was boosted by reports that the European Central Bank was buying bonds.

Reports said the European Central Bank was buying Portuguese and Irish bond, Jean-Claude Trichet, the President of ECB, said the bond buying was designed to permit the best possible transmission of monetary policy under the present circumstances and "temporary in nature."

The euro was lifted and climbed above 1.3150 against the dollar and broke 1.32 in late trading session on Thursday.

However, some economists said the future of the euro is in doubt and fear contagion to Asia and the United States.

In late Thursday trading, the dollar bought 83.90 Japanese yen, comparing with 84.20 late Wednesday, and the euro rose to 1.3210 dollars from 1.3132.

The British pound fell to 1.5584 dollars from 1.5618. The dollar declined from 1.0036 to 0.9936 against Swiss francs, and also dropped to 1.0034 Canadian dollars from 1.0158.