* ECB cuts rates, restarts asset purchases
* Yen weakens on U.S.-China trade hopes
* US consumer prices rose in August
(New throughout, updates trading and comments to U.S. market
open, new byline, changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, Sept 12 (Reuters) - The euro gained against the
dollar on Thursday, erasing earlier losses, after the European
Central Bank launched new stimulus but failed to live up to some
dovish market expectations.
The ECB cut its deposit rate to a record low -0.5% from
-0.4% and will restart bond purchases of 20 billion euros a
month from November.
It also said it expects bond purchases to run for as long as
necessary and end shortly before it starts raising the key ECB
interest rates. “We got a little bit of everything, but when all was said
and done I think markets were expecting the bazooka to come out,
and we definitely didn't get the bazooka,” said Win Thin, global
head of currency strategy at Brown Brothers Harriman in New
York.
The euro EUR= was last up 0.33% at $1.1045, after earlier
dropping as low as $1.0925. That was the lowest since the single
currency fell to $1.0924 on Sept. 3, which was the lowest in
more than two years.
Central banks globally are fighting against slowing growth
and tepid inflation, with the U.S.-China trade war adding
further headwinds to the global economy.
The safe-haven Japanese yen weakened after Bloomberg News
reported that Trump administration officials have discussed
delaying or rolling back some tariffs on Chinese goods.
It comes after U.S. President Donald Trump on Wednesday
welcomed China's decision to exempt some U.S. anti-cancer drugs
and other goods from its tariffs, and announced a short delay to
scheduled tariff hikes on billions worth of Chinese goods.
The greenback was last up 0.07% at 107.89 yen JPY= .
U.S. data on Thursday showed that underlying consumer prices
increased solidly in August, leading to the largest annual gain
in a year, but rising inflation is unlikely to deter the Federal
Reserve from cutting interest rates again next week to support a
slowing economy. It comes after data on Wednesday showed that U.S. producer
prices unexpectedly rose in August. This next major economic focus will be retail sales data on
Friday.
========================================================
Currency bid prices at 10:23AM (1423 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1045 $1.1009 +0.33% -3.70% +1.1069 +1.0928
Dollar/Yen JPY= 107.8900 107.8100 +0.07% -2.15% +108.1600 +107.5300
Euro/Yen EURJPY= 119.18 118.71 +0.40% -5.58% +119.4900 +117.5800
Dollar/Swiss CHF= 0.9896 0.9926 -0.30% +0.84% +0.9945 +0.9883
Sterling/Dollar GBP= 1.2339 1.2326 +0.11% -3.28% +1.2357 +1.2284
Dollar/Canadian CAD= 1.3177 1.3191 -0.11% -3.38% +1.3217 +1.3176
Australian/Doll AUD= 0.6888 0.6861 +0.39% -2.28% +0.6891 +0.6861
Euro/Swiss EURCHF= 1.0933 1.0932 +0.01% -2.85% +1.0949 +1.0853
Euro/Sterling EURGBP= 0.8949 0.8929 +0.22% -0.39% +0.8972 +0.8887
NZ NZD= 0.6439 0.6411 +0.44% -4.12% +0.6450 +0.6410
Dollar/Dollar
Dollar/Norway NOK= 8.9375 8.9554 -0.20% +3.46% +9.0096 +8.9358
Euro/Norway EURNOK= 9.8726 9.8615 +0.11% -0.34% +9.9107 +9.8300
Dollar/Sweden SEK= 9.6265 9.6722 -0.17% +7.39% +9.7308 +9.6224
Euro/Sweden EURSEK= 10.6332 10.6517 -0.17% +3.60% +10.6781 +10.6149
(Editing by Nick Zieminski)