Summary Euro edged higher against dollar ahead of the European Central Bank's rate decision this week.
NEW YORK CITY (AFP) - The euro edged higher against the dollar Monday after three straight losing sessions, as the market remained relatively stable ahead of the European Central Bank's rate decision this week.
At 2200 GMT the euro bought $1.3516, up from $1.3482 Friday but still well below the $1.38 line it nearly touched last week before data showing inflation sharply falling in the eurozone brought it back down.
The inflation data sparked expectations that the ECB will have to cut rates or take other easing action on Thursday to boost the region's economic growth.
"Investors will be watching if the ECB president Mario Draghi will indicate further monetary easing in the eurozone, with a new long-term refinancing option a viable option," said Desmond Chua, market analyst at CMC Markets in Singapore.
Other currency pairs were relatively quiet. The dollar slipped to 98.59 yen from 98.69 Friday while the euro rose to 133.25 yen from 133.10.
The British pound gained to $1.5967 from $1.5923, and the dollar dropped to 0.9095 Swiss franc from 0.9117 franc.
The dollar's path could also be shaped by key US economic data this week, including the jobs market in October and economic growth in the third quarter.
But Kathy Lien of BK Asset Management said US indicators would take a back seat to the ECB decision.
"We believe the most important event this week is not the non-farm payrolls report but the European Central Bank's monetary policy announcement on Thursday," she said.
"With inflationary pressures slowing significantly in the region, investors have rushed to price in another round of easing from the ECB."
