"The ECB is determined to send out the message that it will be tough on inflation despite the still-difficult economic situations in many eurozone countries and the global economic uncertainties resulting from events in Japan and the Middle East and North Africa," Archer said. A rates rise "is warranted to try to contain households' inflation expectations and companies' pricing expectations," he added. Investors appeared cautious ahead of the US Labor Department's keenly anticipated March jobs data due to be released Friday. High unemployment and a depressed housing market pose stiff headwinds to the recovery which to date has been mainly supported by government spending. Most economists forecast that the world's biggest economy added 185,000 non farm jobs in March, down from 192,000 the prior month, and that the unemployment rate will remain at 8.9 percent. In late New York trade, the pound fell to $1.6027 from $1.6080 late on Wednesday. Against the Swiss franc, the dollar rose to 0.9194 francs from 0.9179 the prior day.