The euro extended gains on the dollar to stand half a percent up on the day after comments from European Central Bank president Jean-Claude Trichet on Thursday indicating the bank was in no hurry to cut rates. The euro climbed to $1.2377 as Trichet spoke at a news conference following an ECB decision earlier to leave interest rates steady at 2.0 percent. The market was waiting for any hints that the central bank might be leaning towards cutting rates in coming months.
Instead, Trichet said the bank had not changed its view that its policy stance was in line with price stability, that there was more liquidity than needed for inflation-free growth and liquidity could lead to consumer price pressure in the medium term. "It's not dovish at all, he's not giving any indication that they are in a hurry to cut rates or that a rate cut is coming," said Aziz McMahon, currency strategist at ABN Amro in London. By 1254 GMT the euro stood at $1.2355. ///

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