NEW YORK: The euro-dollar exchange rate held steady Tuesday despite improved US data on construction and manufacturing, with traders focusing on Thursday's European Central Bank policy meeting.
Meanwhile the pound took a hit after a poll showed Scottish independence advocates had a chance to win the September 18 referendum on breaking from the United Kingdom.
The euro was at $1.3132, a pinch above Monday's close, on hold for the ECB's response to a steady stream of poor eurozone data.
The common currency has been sinking for two months straight against the greenback as worries returned of recession and deflation in the eurozone.
Hopes are that the central bank will take fresh action to stimulate the economy, including an asset purchase program, though many worry it could put off the decision for another month.
"Investors are holding onto the outside prospect that the ECB might announce further steps to help boost growth and demand later this week... and this appears to be outweighing any concerns about the war between Ukraine and Russia," said CMC Markets analyst Michael Hewson.
The pound suffered against the euro and dollar after the latest YouGov survey showed Scotland's pro-independence camp within touching distance of victory.
"Although most analysts still expect Scotland to remain within the UK, the latest uptick in the Yes vote for independence has spooked the markets, which did not expect the vote to be this close," said Kathy Lien of BK Asset Management.
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