April 09, 2008	Wednesday	Rabi-us-Sani 2, 1429

LONDON, April 8: The dollar held its ground against the euro here on Tuesday ahead of the publication of minutes from the US Federal Reserve’s March meeting and on expectations the European Central Bank will make no change in eurozone interest rates on Thursday.

The single European currency in late-day trade was at $1.5707 against $1.5709 late Monday in New York.

The dollar was meanwhile at 102.57 yen, up from 102.37 on Monday.

Trading activity was thin as market players awaited minutes from a meeting last month of Federal Reserve monetary policymakers.

Traders are looking for any hint in the minutes that might point to further rate cuts ahead, particularly after Friday’s disclosure that the US economy shed 80,000 jobs in March.

“Should the impression that the Fed could slow down the pace of the rate cut cycle be further underpinned, the dollar is unlikely to find any strong, sustainable support in the current environment,” said Gavin Friend at Commerzbank.

Current speculation is that US Federal Reserve will again lower its benchmark interest rate at a meeting later in April, thereby making the dollar less attractive to investors.

The European Central Bank meets on Thursday and according to analysts should hold firm on interest rates, with record eurozone inflation a greater concern than slowing economic activity.

“The ECB will no doubt maintain its neutral stance at Thursday’s meeting and leave interest rates as they are,” said Commerzbank economist Michael Schubert.

“Just as in the past, the bank will keep its options open for further action,” he added.

Elsewhere, the pound hit a string of record lows against the euro after the release of disappointing British housing data.

In London on Tuesday, the euro changed hands at $1.5707 against $1.5709 late on Monday, at 161.03 yen (161.86), 0.7976 pounds (0.7901) and 1.5926 Swiss francs (1.5918).

The dollar stood at 102.57 yen (102.37) and 1.0144 Swiss francs (1.0130).

The pound was at $1.9690 ($1.9880).

On the London Bullion Market, the price of gold fell to $915 per ounce from $926.50 late on Monday.—AFP