Dollar slips vs euro as ECB keeps rates steady

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Key Points

NEW YORK (Reuters) -The dollar fell against the euro on Thursday after the ECB kept rates steady even as it acknowledged cooling inflation, and the U.S. currency extended its decline against most other majors a day after Fed Chair Powell said the central bank still expects to cut rates later this year...

The European Central Bank kept borrowing costs at record highs on Thursday and stressed that, while inflation was easing faster than it anticipated only a few months ago, it was still not ready to lower rates...

Leaving its main interest rate unchanged at 4.0% as expected, the ECB tweaked its messaging slightly to reflect a continued fall in inflation over the past 1-1/2 years and new, lower economic projections...

The ECB message follows Federal Reserve Chair Jerome Powells remarks on Wednesday where he told lawmakers interest rate cuts were still likely in coming months but only if warranted by further evidence of falling inflation...

The yen has been under pressure for most of the past two years because of the gap between sub-zero Japanese interest rates and a global rise in rates, as other major central banks aggressively hiked interest rates to tame inflation...

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