The dollar extended gains versus the euro in early European trade on Thursday, setting a five-month high for the third day running after Federal Reserve chief left markets betting on U.S. interest rate hikes. Fed Chairman Alan Greenspan gave mixed signals about the rate outlook during congressional testimonies this week, talking down the risk of inflationary pressures on Wednesday while saying that deflation was not a problem only a day before. But markets decided Greenspan was leaning towards a dollar-boosting rate hike. At 0655 GMT, the dollar was a quarter percent up on the day at $1.1809 per euro , holding below a five-month high of $1.1787 set earlier in the session. It was steady against the yen at 109.32 and stronger versus the Swiss franc, the British pound and the Australian and New Zealand dollars.
U.S. economic data releases later in the day include weekly jobless claims, which are closely watched for hints on the U.S. labour market, and March producer price data. Both indicators come out at 1230 GMT. The European Central Bank's Governing Council meets on Thursday but no interest rate announcements were scheduled. Any other announcements would be made at 1230 GMT. Policymakers scheduled to speak on Thursday include: U.S. Treasury Secretary John Snow at 1615, Federal Reserve Board Governors Susan Schmidt Bies at 1715 GMT and Ben Bernanke at 1930 GMT. For full report on major currencies click on [FRX/] For previous updates on currency moves click on [USD/-M]////