After that The European Central Bank President Jean-Claude Trichet expressed support for a strong dollar and as he announced small steps toward the withdrawal of extraordinary liquidity measures, the dollar recovered from near 16-month lows against the euro.

European Central Bank President’s Statement

It has been said by Trichet that the euro zone had a “very important stake” in a strong dollar. Euro zone officials have show their concerns about gains for the euro, as it recently hit a 16-month high against the greenback. U.S. trade partners are not willing to see a too rapid depreciation of the US dollar as a cheap dollar affects their exports to the U.S. and endangers economic recovery.

Major Currencies

According to EBS via CQG, in morning trading, the euro was recorded at $1.5077 from $1.5045 late Wednesday.

It has been noted that the dollar was at Y88.36 from Y87.40, while the euro was at Y133.22 from Y131.48. The U.K. pound raised up from $1.6638 to $1.6585. The dollar was at CHF0.9998 from CHF1.0017.

Dollar Index

The Dollar Index, was up from 74.635  to 74.689. This index tracks the greenback against a trade-weighted basket of six currencies.

Withdrawal of extraordinary liquidity measures

It  has also been announced by Trichet that small steps would be taken toward the withdrawal of extraordinary liquidity measures. Meanwhile, ECB staff projections on inflation and growth for 2010 and 2011 didn’t imply a need to a rapid increase in interest rates.

Key interest rates remains unchanged

The central bank has left key interest rates unchanged, it is the same what was expected by them.

People who liked this Post also read

• Euro gained against dollar after firmer German Ifo
  On Tuesday the euro rise against the dollar, reversing earlier losses as a firmer-than-expected German sentiment survey offset concerns about the country's banking sector.A bigger-than-expected rise in the German Ifo November business climate index has he...
• Dollar gains; higher-yielding currencies lose shine
  On Friday the dollar rise, giving an extension to the previous day's gains as investors retreated from riskier assets, taking the shine off higher-yielding currencies such as the Australian dollar.Today Tokyo's Nikkei average fell 0.5% and after the U.S. ...
• Canadian Dollar dropped down as Stocks fall on Concern Rally Overdone
  The Canadian dollar has drooped down against 13 of its 16 most-traded counterparts and it has gained only against the currencies of New Zealand, Australia and South Africa. The U.S. dollar has shown a rise against all but two major currencies as......
• EUR/USD hits 2 1/2-Month low, hit by ZEW survey
  On Tuesday the euro hit a 2-1/2-month low versus dollar, effected by concerns about the health of euro zone banks, while traders have also been prompted by a slip in German economic sentiment to dump the single currency......
• EUR/USD hits 2 1/2-Month low, hit by ZEW survey
  On Tuesday the euro hit a 2-1/2-month low versus dollar, effected by concerns about the health of euro zone banks, while traders have also been prompted by a slip in German economic sentiment to dump the single currency......