EURUSD rose

The dollar hovered near a record low against the euro and a 26-year low versus sterling on Thursday, dragged down by expectations for U.S. interest rate cuts while a monetary tightening outlook supported other currencies. The euro rose to a two-year high around USD 1.3620 on Thursday, inching closer to a record high of USD 1.3670. Against sterling, the dollar was at USD 2.0070, down 0.1 %. Sterling jumped to a 26-year high against the dollar at USD 2.0133 on Wednesday on expectations the BoE will raise interest rates by at least 25 basis points to 5.5 % in May, which would top the U.S. federal funds rate.

Nikkei fell

The Nikkei average fell 1.44 % on Thursday, following a 0.8 % rise the previous session, as investors sold exporters such as Canon Inc. on a stronger yen. The Nikkei finished the morning down 254.92 points at 17,412.41. The broader TOPIX index lost 1.33 % to 1,707.70.

Yen rose

Expectations of an interest rate rise in China have grown after authorities pushed back the release of first-quarter economic figures to after market close at 3 PM (0700 GMT) on Thursday, fuelling concern that it was an attempt to blunt the market impact of an exceptionally strong batch of data. EURJPY opened at 161.40 and was traded between 160.16 and 161.49 in Far East..