TOKYO: The euro dipped in Asia on Thursday ahead of a closely watched European Central Bank policy meeting later in the day that comes as its officials are engaged in a public spat with the eurozone's biggest economy Germany.
While it is not expected to add to last month's monetary easing measures, traders will focus on a news conference by bank chief Mario Draghi hoping he will give some forward guidance on policy.
"The ECB is very unlikely to announce any policy changes after cutting interest rates and expanding its QE programme last month," Capital Economics said in a statement, referring to quantitative easing, or its massive asset-purchase scheme.
"President Draghi will probably respond to German politicians' recent criticism of the bank's ultra-loose policy at the press conference following the decision by reiterating the ECB's independence and stressing that more support is still possible," it said.
The euro fetched $1.1291 and 123.84 yen in late morning trade, against $1.1296 and 124.03 yen.
German Finance Minister Wolfgang Schaeuble has been unusually frank about his growing unease with ECB polices.
Schaeuble has suggested they were helping foment political unrest in Germany and aiding the rise of an anti-euro, anti-immigrant party.
The dollar slipped to 109.74 yen from 109.81 yen in New York, although it is still well up from levels below 108 yen seen earlier in the week.
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