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NEW YORK (Reuters) - The dollar fell to a one-week low on Thursday as the European Central Bank said it would keep a lid on borrowing costs and an auction of 30-year Treasury bonds was met with sufficient demand to help stabilize yields, giving a boost to riskier assets.
FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won
The ECB said it was ready to accelerate money-printing to keep eurozone yields down, signaling to skeptical markets it was determined to lay the foundation for a solid economic recovery.
The dollar index fell to its lowest in a week early in Thursday's European session and there was a mild "risk on" tone in currency markets, as attention turned to the European Central Bank's policy meeting.
Asian stocks were set to open slightly higher, following Wall Street's momentum, after a report on U.S. consumer prices calmed concerns about inflation, helping steer the Dow Jones Industrial Average to a record close.
ECB expected to signal faster money printing
LONDON, March 11 (Reuters) - The dollar index fell to its lowest in a week early in Thursday’s European session and there was a mild “risk on” tone in currency markets, as attention turned to the European Central Bank’s policy meeting.
Softer consumer prices data in the United States on Wednesday helped to ease fears about a possible spike in inflation when economies re-open from the COVID-19 pandemic. U.S. Treasury yields declined from their recent spike.
At the European Central Bank meeting, policymakers are expected to send a message that they will prevent bond yields from rising further and harming the bloc’s economic outlook.
Oil prices rose on Thursday on a weaker dollar as fears of rising U.S. inflation eased while a steep fall in U.S. fuel stocks meant a crude glut would be short-lived as refiners restart in Texas after last month's freeze.