The dollar rose to a seven-week peak against the euro on Thursday after the head of the European Central Bank said its Governing Council expects key ECB interest rates to remain at present or lower levels for an extended period.
The dollar was also strong after solid U.S. economic data released on Thursday ahead of nonfarm payrolls data, due on Friday, that could firm up the case for a cut in Federal Reserve stimulus from this month.
Earlier, the ECB left its main interest rate unchanged at a record low of 0.50 percent as recent economic data has shown a nascent recovery taking hold in the euro zone.
The dollar index was up 0.5 percent at 82.63, not far from a seven-week high of 82.671 touched earlier in the New York session. The euro was down 0.7 percent at $1.3117 after falling to a seven-week low of $1.3109. The shared currency failed to gain support from a recent run of encouraging economic data.
The dollar tested the 100-yen level, marking a six-week peak for the currency pair at 100.19 on both yen weakness and broad dollar strength. The dollar was last up 0.4 percent at 100.11 yen. Traders said the yen suffered as investors unwound safe-haven buying, spurred by concerns over a U.S. plan to attack Syria, while moving little after the Bank of Japan maintained policy as expected
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