Euro rose in European trade against dollar after a two-day hiatus from gains, approaching 17-month highs on speculation about the ECB’s next week meeting.
Some analysts expect the European Central Bank to carry on its fight against inflation in the euro zone and extend interest rate hikes.
Dollar fell anew following a spate of weak US data, which bolstered the case that the 0.25% Fed rate hike next week will be the last.
EUR/USD rose 0.3% to 1.1229, with a session-low at 1.1193, after losing 0.3% on Wednesday, the second loss in a row on profit-taking off 17-month highs at 1.1275.
In addition profit-taking, euro was hurt by recent more bearish remarks by ECB officials, which cast doubt on the prospects of an ECB rate hike in September.
President of De Nederlandsche Bank Klaas Knot said the ECB will monitor inflation signs closely at upcoming months to avoid an overly tightening monetary policy.
