European finance ministers said yesterday they are ``increasingly concerned'' about the euro's 16 percent gain against the dollar in the past 12 months. The dollar rebounded after dropping to $1.5250, a level at which some traders had orders to buy the currency, said Neil Jones at Mizuho Capital Markets.
The euro declined to $1.5188 at 6:55 a.m. in New York, from $1.5217 yesterday and $1.5275 two days ago, the highest since the currency's inception in 1999. The dollar traded at 103.74 yen from 103.37. It reached 102.62 yen on March 3, the weakest since Jan. 28, 2005. The euro was at 157.59 yen from 157.30.
The ECB will keep its key rate at more than a six-year high of 4 percent at tomorrow's rate-setting meeting, according to economists surveyed by Bloomberg News. Futures show 68 percent odds the Federal Reserve will cut its target rate 0.75 percentage point to 2.25 percent on March 18, while the Bank of England is forecast to leave its benchmark rate unchanged at 5.25 percent tomorrow.