Euro weakens on expectations of more ECB policy easing

The Australian and New Zealand dollars were subdued against their U.S. counterpart on Tuesday but held gains versus the euro on expectations of further easing from the European Central Bank. ECB Chief Economist Peter Praet reiterated the bank’s readiness to modify its trillion-euro bond-buying program should economic turbulence merit action, according to an interview in a Swiss newspaper.

As a result, the euro dipped near three-week lows at A$1.5680, having tumbled around 10 cents in a month.

Against the U.S. dollar. the euro was steady at US$1.1190.

The Australian dollar stood at US$0.7140, having dropped nearly 1 percent on Monday.

It was pulling away from a four-week high of $0.7280 touched on Friday following comments from Federal Reserve officials that kept alive expectations for a rate hike later this year.

The U.S. dollar held on to overnight gains after some Federal Reserve officials signaled the central bank is likely to raise interest rates this year.

The greenback was flat at 95.881 against a basket of six currencies after earlier climbing 1 percent. It was also little changed at 120.47 yen following a 0.45 percent rise.

U.S. stocks gained overnight as St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart separately made the case for an increase in U.S. interest rates this year, boosting financial shares.

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