FOREX-Euro slips vs dollar; ECB unwinds liquidity measures

Thu Mar 4, 2010 9:26am EST Related News Euro in reverse, dollar supported ahead of payrollsThu, Mar 4 2010NYMEX-Crude slips from 7-wk high, dollar edges upThu, Mar 4 2010Euribors fall, curve flattens on ECB liquidity planThu, Mar 4 2010FOREX-Euro, sterling fall on debt worries; dollar risesMon, Mar 1 2010Dollar climbs after Fed discount rate hikeFri, Feb 19 2010

* Euro edges lower despite strong Greek bond sale

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* US weekly jobless claims fall as expected

* Dollar rises vs yen after US weekly jobless data

(Adds comments, details; changes dateline, previous LONDON,byline)

By Vivianne Rodrigues

NEW YORK, March 4 (Reuters) - The euro edged lower onThursday as comments by the European Central Bank reinforcedthe view interest rates in the region will remain low in theforeseeable future.

The euro rose earlier in the session after Greece"s sale of10-year bonds drew solid demand, but succumbed to pressure asselling resumed after the ECB signaled it is unwinding more ofthe extraordinary help it gave the euro zone economy during theglobal crisis. For details, see [ID:nLDE6230PC] and[ID:nLDE6231U3]

"The main takeaway is that Mr. Trichet"s comments so farare consistent with the view that the (European Central Bank)will keep rates at record lows perhaps longer than its U.Scounterpart," said Joe Manimbo, a currency trader at TravelexGlobal Business Payments in Washington.

"That"s putting some downward pressure on the euro," headded.

In morning trading in New York, the euro was 0.2 percentlower at $1.3669 EUR=, after trading as high as $1.3712,according to Reuters data.

Earlier the ECB said it was keeping its benchmark interestrate on hold at a record low of 1 percent for the tenth monthrunning, as expected by economists.

Trichet also stuck to his view that the recovery of theeuro zone"s economy from the recent troubles would be uneven.

In the United States, the dollar rose versus the yen aftera report showed first-time filings for unemployment benefitsfell as expected last week. [ID:nLLA4EE603]

The dollar was last 0.7 percent higher at 89.02 yen JPY=.

(Additional reporting by Wanfeng Zhou in New York) (Editing by Theodore d"Afflisio)

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