Early trade in New York: Dollar slips against basket of currencies

The dollar fell against a basket of major currencies on Thursday, while the euro gained after European Central Bank head Mario Draghi suggested it was less necessary to prop up the market through ultra-loose monetary policy. Draghi said the ECB removed a reference to using all available measures to induce growth and inflation "because the sense of urgency is not there." The Governing Council had also discussed removing a reference to lowering interest rates in its forward guidance and had increased its inflation and growth profile for the euro zone next year, he added.
The euro rose above the $1.06 level during Draghi's remarks, reversing earlier selling that had brought it to a six-day low. It was last up 0.45 percent at $1.0588. The dollar index, which tracks the greenback against the euro and five other major world currencies, hit a session low of 101.700 as Draghi spoke. It was last down 0.25 percent at 101.820.
"The ECB raised the euro zone inflation and growth profile for 2018, and (Draghi) reduced the risks, although they still remain on the downside for growth," said Richard Cochinos, head of European G10 FX strategy at Citigroup in London. "It's clear the market's taken it as somewhat positive (for the euro)." Before the ECB news conference, the dollar hit a three-week high against the yen and remained on course for a fourth straight day of gains against the Japanese currency. It was last up 0.4 percent at 114.78 yen.