The dollar strengthened slightly Thursday as the European Central Bank's widely anticipated decision to keep interest rates steady left financial markets largely unmoved.
The 12-country euro bought $1.3144 in afternoon European trading following the decision, down from $1.3171 in New York late Wednesday.
The U.S. dollar also was stronger against other major currencies, buying 104.81 Japanese yen, up from 104.70 yen in New York late Wednesday. The British pound bought $1.9110, down from $1.9128 the previous day.
Following the ECB's decision, traders were focusing on what bank President Jean-Claude Trichet would say.
"The market is interested in whether Trichet will say something that will effectively moderate the hawkish remarks made by senior ECB officials," said Minoru Shioiri, a senior manager of foreign exchange at Mitsubishi Securities in Tokyo.
Until a series of the latest economic data showed a slackening of growth in the euro zone, ECB leaders had made comments suggesting the bank's willingness to take action to contain inflation.
The euro is likely to be sold if Trichet's comments are viewed as moderating that stance.
Analysts have credited the dollar's recent strength to positive words this week from the U.S. Federal Reserve chairman in testimony to Congress. However, as markets await figures on U.S. non-farm jobs Friday, they warn that Alan Greenspan's words alone will not be enough to bolster the dollar.
The euro soared from about $1.20 in September to an all-time high of $1.3667 at the end of December, powered by concerns over the U.S. budget and trade deficits. The dollar has since regained some ground, but those worries remain and analysts think the recovery could be temporary.