Dollar Gains On Hopes For European Stimulus

Frankfurt (May 8)  The dollar strengthened on Thursday as Europe's top central banker dented the euro with talk of stimulus in June.

European Central Bank President Mario Draghi said that policy makers were open to unprecedented easing measures if deflationary pressures persist.

Earlier in the day, the ECB decided to maintain the main refinancing rate unchanged at a record low 0.25%, for the sixth month in a row.

The news from Europe overshadowed US jobless claims data and a second data of Congressional testimony from Federal Reserve Chairman Janet Yellen .

The dollar rose to USD1.3850 versus the euro, gaining about a penny from yesterday afternoon.

There was little movement against the sterling at USD1.6950 . The Bank of England maintained its loose monetary policy yet again on Thursday.

The buck lost a bit of ground versus the yen, slipping to Y101.50 from above Y102 .

The Labor Department released a report on Thursday showing that initial jobless claims pulled back by more than expected in the week ended May 3rd .

The Labor Department said initial jobless claims fell to 319,000, a decrease of 26,000 from the previous week's revised level of 345,000.