The euro fell nearly half a percent against the dollar from the U.S. close in Europe on Thursday ahead of a policy meeting by the European Central Bank. Speculation of a rate cut hit the euro last week following warnings on consumer spending from ECB President Jean-Claude Trichet, but 58 of 60 analysts polled by expect no change in rates on Thursday from the current 2.0 percent. The ECB makes its decision at 1145 GMT, with a news conference at 1230 GMT. German retail sales rose by 0.3 percent month-on-month in February and were unchanged year-on-year, beating expectations. The euro was trading at $1.2260 at 0652 GMT, compared with one-week highs of $1.2323 set on Wednesday.
The yen was buoyant, briefly rising near the previous day's four-year peak against the dollar on a broad improvement in the quarterly "tankan" survey of Japanese business sentiment. The yen was at 104.16 per dollar , against highs of 103.38 set on Wednesday. The yen scaled back against the euro to 127.61 from the pervious day's four-month highs of 126.60 . The Swedish crown rose to the day's highs against the euro after Sweden cut interest rates by 50 basis points to 2.0 percent, matching euro zone rates. "The repo rate is now low in historical terms. This indicates that it will need to be raised in the longer term," Sweden's central bank said. The euro zone manufacturing PMI for March is due at 0800 GMT, forecast at 52.3 from the previous 52.5. U.S. weekly jobless claims are due at 1330 GMT and the U.S. ISM manufacturing index at 1500 GMT, forecast at 60.0 in March from 61.4 in February. For full report on major currencies click on [FRX/] For previous updates on currency moves click on [USD/-M]////