LONDON, Jan 22 - The dollar resumed its slide against the euro on Thursday on rising doubts policymakers will unite to prop up the greenback, while European stocks lost steam after early gains. European government bond yields edged lower, helped by the firmer euro and unmoved by a regular statement by the European Central Bank which expressed concern about big currency swings but that it sees interest rates as appropriate. Safe-haven gold was flat, eyeing any effect that U.S. unemployment figures, due at 1330 will have on the dollar, while crude oil futures rose. With the European Central Bank and February's meeting of the Group of Seven (G7) industrialised nations seen unlikely to peg back the surging euro, the dollar remained on the back foot. It had rallied last week as the ECB stepped up its rhetoric to tame recent rises in the euro. But recent statements this week from ECB Governing Council member Nout Wellink and Chief Economist Otmar Issing have been seen as less robust. "What is notable is a shift in the ECB stance," said Mitul Kotecha, head of global foreign exchange research at Credit Agricole Indosuez in London.
"The recent move lower in the euro has reduced some of the ECB's concern and this opens the euro to further strength." At 1030 GMT the euro was up nearly three quarters of a percent against the dollar at $1.2714 -- less than two cents below last week's all time high around $1.2900. The yen was up half a percent against the greenback at 106.31 . STOCKS, BONDS European stocks were a touch higher at 1030 GMT after a strong start, taking their cue from Asian shares which ended mixed. "No one is doubting the strength of the profits recovery. But one thing people are worried about is the currency effect that hasn't shown so far but will start to show up in the next two quarters," said Nomura strategist Anais Faraj. By 1030 GMT, the FTSE Eurotop 300 index <.FTEU3> was up 0.1 percent at 994 points, while the DJ Euro Stoxx 50 index <.STOXX50E> gained 0.3 percent to 2,882 points. Finnish telecom equipment maker Nokia is due to release fourth-quarter earnings at 1100 GMT. Earlier a broad index of Asian shares <.MSCIAPJ> ended higher up 0.3 percent but Japanese shares were flat weighed down by disappointing earnings from U.S. technology firms.
On Wednesday the Dow Jones industrial average <.DJI> climbed 94.96 points, or 0.90 percent, to 10,623.62, its highest finish since mid-March 2002. But the Nasdaq Composite Index <.IXIC> eased 5.53 points, or 0.26 percent, to 2,142.45. U.S. stock futures pointed to a subdued start on Wall Street on Thursday. European government bond yields fell, aided by the euro. At 1030 GMT, the benchmark 10-year Bund yield was down 2.0 basis points at 4.13 percent. The two-year Schatz yield was down 1.7 bps at 2.38 percent. "We are looking at the currency again," said a trader in Germany. Safe haven gold was flat at $410.75/$411.50 New York close at $410.10/$410.70. Crude oil futures were up 17 cents at $3103.//