SINGAPORE (Reuters) – The euro inched higher on Thursday, as investors awaited details of the European Central Bank’s plans for scaling back its bond-buying stimulus programme, while the dollar took a breather after its recent rally.
The euro inched up 0.1 percent to $1.1819, having edged up from a two-week low of $1.1725 that had been set on Monday.
Since inflation remains low, however, any reduction in the monthly amount of asset purchases is expected to come with a lengthy extension of the programme.
Still, there seems to be some caution toward the risk that the ECB’s policy announcement could give a lift to the euro, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.
“The market may be hedging for a hawkish surprise,” Innes said, referring to the firmness in the euro in recent trading sessions.
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