Today 10:08 AM ET (MarketWatch)
By Saumya Vaishampayan, MarketWatch
NEW YORK (MarketWatch) -- The dollar fell against the euro on Monday, snapping a three-session streak of gains, as investors focused on comments from European Central Bank officials about the potential for further easing in June.
ECB Vice President Vitor Constancio said Monday any monetary-policy decision would hinge on expectations for inflation in the medium term. New staff forecasts will be published at the ECB's June meeting. The ECB targets inflation of just under 2% in the medium term. Ewald Nowotny, a member of the ECB's governing council, said Monday a cut in interest rates won't be enough to fight the region's low inflation, according to Reuters.
On Thursday, ECB President Mario Draghi said he would be "comfortable" taking action next month, if needed. His comments, which led to euro losses, came in a press conference after the central bank released a decision announcing no change in interest rates.
The euro (EURUSD) moved up to $1.3765 from $1.3755 late Friday.
But euro gains could be limited ahead of the June meeting unless inflation data reports surprise to the upside, Citi analysts wrote in a note.
The ICE dollar index (DXY), which pits the dollar against six other currencies, fell to 79.825 from 79.878 late Friday. The WSJ Dollar Index , which measures the dollar against a wider basket of currencies, was at 72.85 versus 72.85.
The dollar (USDJPY) rose to 102.05 Japanese yen from Yen101.81 late Friday. The yen was weighed on by Japan's current account surplus in the year ended March, which was the smallest on record.
Russia said Monday it recognizes the results of the secession referendum in eastern Ukraine and called for a "civilized implementation."
The British pound (GBPUSD) rose to $1.6890 from $1.6848 late Friday. "The prospect of the Bank of England becoming the first of the major central banks to raise interest rates has grown after a spate of good economic data including GDP and employment data," said Kathleen Brooks, a research director at Forex.com, in a note.
The Australian dollar (AUDUSD) rose to 93.73 U.S. cents from 93.58 U.S. cents.
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-Saumya Vaishampayan; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 12, 2014 10:08 ET (14:08 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
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