2010.07.0809:00:00UTC+00Dollar Barely Budges As ECB, BoE Hold Steady

The dollar leveled off versus the yen Thursday morning following a relief rally in the previous session, and failed to make up much ground versus the euro and sterling amid a pair of interest rate decisions from across the Atlantic.

As stocks staged a big late-day advance Wednesday afternoon the dollar gained on the yen, which had been surging for the past month as a preferred safe haven option.

With the European Central Bank and Bank of England holding steady on interest rates, as expected, all eyes will turn to the ECB's accompanying statement for clues on the condition of the region's economy and possible support for its banking system.

The ECB's key rate stood pat at 1 percent, while the BoE held at 0.5 percent.

Later, traders will get the latest glimpse at the struggling US employment market, with the release of the customary weekly jobless claims data.

Economists expect that jobless claims declined to 460,000 during the week following an unexpected surge to 472,000 in the previous week. Even with a modest decline, jobless claims remain exceedingly high from a historical perspective.

The dollar eased slightly from last night's highs versus the yen, slipping to 88.13 from 88.45. A week ago, the dollar hit a 2010 low of 86.95.

German exports rebounded more than expected in May, indicating that the economy is benefiting from the ongoing world trade recovery.

The calendar and seasonally adjusted exports increased 9.2% month-on-month in May, data from Destatis showed.

U.K. manufacturing output in May recorded its biggest annual expansion in 15 years led by strong growth in machinery and equipment industries.

Manufacturing output growth accelerated to 4.3% annually in May from 3% in April, data released by the Office for National Statistics showed on Thursday.

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