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Dollar rises vs. euro in thin trade

The dollar drifted higher against the euro in thin trade on Monday after a news-packed week marked by European Central Bank's new stimulus measures and a solid US May jobs report.

NEW YORK: The dollar drifted higher against the euro in thin trade on Monday after a news-packed week marked by European Central Bank's new stimulus measures and a solid US May jobs report.

"The rebound from the euro last week following news of the ECB's rate cuts and targeted lending scheme was retraced Monday," said John Kicklighter, chief currency strategist at DailyFX.

The euro slipped to US$1.3592 around 2100 GMT from US$1.3641 late on Friday.

"The general underpinning the dollar enjoyed stemmed from last week's US jobs report that showed another month of healthy employment growth," said Joe Manimbo, senior market analyst at XE.com.

The US economy added 217,000 jobs in May while unemployment held at a multi-year low of 6.3 per cent, unchanged from April.

With the ECB and the US jobs data in rear-view mirror, the foreign exchange market appeared poised to sink to new multi-year lows in volatility, said Kathy Lien of BK Asset Management.

Lien discounted the possibility of any additional surprises from the Federal Reserve or the ECB over the next three months, predicting the euro-dollar trade would likely remain within a US$1.35 to US$1.38 range.

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