Euro dips in pre-ECB jockeying, U.S. yields bolster dollar

The dollar was bobbing near a 3-1/2 month high and shares dipped for a second day on Wednesday, as the recent jump in U.S. borrowing costs weighed on markets before what is set to be an action-packed ECB meeting. Safe-haven gold XAU= was stuck near a four-month low while there were also signs pressure was building again on emerging market assets that suffered badly earlier in the year from rising U.S. rates. Investors were already beginning to move to the sidelines before Thursday's ECB meeting, where expectations are intense that the bank will respond to the euro zone's low inflation and sluggish growth with an aggressive set of easing measures. The euro sagged 0.1 percent to about $1.3611 EUR= in early trading, while shares steadied and the region's main bond markets clawed back some of the ground they had conceded on Tuesday following the rise in U.S. rates.

by via Yahoo! Finance: Top Stories