Dollar slips lower vs. rivals as sentiment recovers

 The dollar slipped lower against the other major currencies on Thursday, as market sentiment recovered after global growth concerns dampened demand for riskier assets earlier in the week, but the greenback was still within close distance of a four-month high.

EUR/USD edged up 0.09% to trade at 1.1023, pulling away from Wednesday’s one-month low of 1.0979.

Market sentiment improved amid growing speculation major central banks around the world will introduce stimulus measures in order to boost economic growth.

On Thursday, investors were especially looking ahead to the European Central Bank’s policy statement, due later in the day.

Sentiment had weakened after the International Monetary Fund on Tuesday down wardly revised its projection for global economic growth in 2016 to 3.1%, from the prior 3.2%, though expecting a rebound to 3.4% in 2017.

GBP/USD was little changed at 1.3203 after a weak U.K. retail sales report added to concerns over the outlook for British economic growth.

BUY EURINR ABOVE 74.20 TGT -74.30-74.40-74.50 SL 74 BELOW CMP 74.20

BUY GBPINR ABOVE 89 TGT -89.10-89.20-89.30 SL 88.80 BELOW CMP88.97


TODAY FOREX SIGNAL

Dollar hits two-week low against yen

The dollar hit a two-week low against the safe-haven yen on Thursday, weighed down by uncertainty over whether the U.S. Federal Reserve will raise interest rates in June or July.

Strategists said comments from Bank of Japan board member Takehiro Sato, who said on Thursday he was opposed to deepening negative interest rates, had lifted the yen, which was already trading strongly on the back of subdued risk sentiment across markets.

The dollar was down half a percent by 0740 GMT at 108.99 yen, having earlier touched 108.825 yen, its lowest for two weeks. That was around 2.5 percent weaker than a one-month high of 111.455 yen set on Monday.

The European Central Bank will at 1145 GMT publish its latest interest rate decision, with no change expected, followed by a press conference with ECB chief Mario Draghi at 1230 GMT.

The euro rose 0.3 percent to $1.1221, its highest in nine days, lifted by market expectations that the ECB will raise growth and inflation forecasts, a rare positive step even as it emphasises persistent negative risks and a readiness to provide more stimulus.

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