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Dollar gains as ECB stands pat on policy

The US dollar pushed higher against the euro and the pound on Thursday (Aug 7) after the European Central Bank and the Bank of England left their monetary stances unchanged in policy reviews.

NEW YORK: The US dollar pushed higher against the euro and the pound on Thursday (Aug 7) after the European Central Bank and the Bank of England left their monetary stances unchanged in policy reviews.

The dollar gained further strength after news that the United States was weighing launching new air strikes in Iraq against jihadist insurgents, after it attacked two minority centres around Mosul. The dollar rose as high as $1.3338 per euro before slipping back to $1.3363.

"The greenback continues to benefit from generally positive US economic data, which has contrasted the negative news out of the euro zone," said Omer Esiner, market strategist at Commonwealth Foreign Exchange.

"Moreover, investors have sold the euro on worries that a sustained period of economic sanctions against Russia will take its toll on Germany's economy."

The prospect of increased fighting in Iraq appeared to send investors to the safe haven of the yen as well; the yen was flat against the dollar but higher against the euro.