Dollar keeps rising against euro over expected ECB rate cut

The US dollar kept rising Friday versus the euro on expectations that the European Central Bank ( ECB) may cut interest rates next week. The dollar index, which tracks the greenback against six major currencies, rose about 0.7 percent to 80.77, the highest level since mid-September. In the previous session, the dollar soared versus the euro after data showed eurozone inflation fell more than forecast as well as heightened expectations that the ECB would further ease monetary policy during its policy meeting scheduled for Nov. 7. European Union's statistics office said Thursday eurozone inflation fell to 0.7 percent in October, close to the lowest level in four years, leaving more room for the ECB to launch more monetary stimulus to support economic recovery. Moreover, separate data showed that eurozone unemployment rate in September rose to a record high of 12.2 percent. The U.S. Federal Reserve Wednesday maintained quantitative easing program at current scale after a two-day policy meeting. Although the move will debase the dollar, the greenback was able to gain as investors had already priced in the expectations and took profits from earlier bets. In late New York trading, the euro fell to 1.3491 dollars from 1.3590 dollars of the previous session, and the British pound decreased to 1.5927 dollars from 1.6053 dollars. The Australian dollar slipped to 0.9436 dollar from 0.9457 dollar. The dollar bought 98.76 Japanese yen, higher than 98.32 yen of the previous session. The greenback also moved up to 0.9126 Swiss franc from 0.9055 and rose to 1.0428 Canadian dollars from 1.0420.