The dollar strengthened on Thursday, reversing its weakening trend of the past seven days, while the euro slipped ahead of a European Central Bank meeting at which policymakers could step up stimulus measures.
The ECB is expected to increase the size of its 750 billion euro ($840 billion) Pandemic Emergency Purchase Programme to support Europe's weakest economies - although some investors think this will happen at July's meeting rather than today.
The euro was at $1.2025 at 07:20 GMT, down 0.3% and retreating from three-month highs. It has been supported recently by proposals for a 750 billion euro EU-wide recovery fund, made up of grants and loans, to share the cost of the coronavirus on hard-hit countries such as Italy and Spain.
The dollar rose around 0.3% against a basket of currencies, having weakened in the last week as global markets grew more optimistic about an economic recovery. The U.S. currency began strengthening in overnight trading but picked up more sharply from around 06:00 GMT.
Source : Reuters