* ECB cuts rates, restarts asset purchases
* Yen weakens on U.S.-China trade hopes
* US consumer prices rose in August
(New throughout, updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON) NEW YORK, Sept 12 (Reuters) – The euro gained against the dollar on Thursday, erasing earlier losses, after the European Central Bank launched new stimulus but failed to live up to some dovish market expectations. The ECB cut its deposit rate to a record low -0.5% from -0.4% and will restart bond purchases of 20 billion euros a month from November. It also said it expects bond purchases to run for as long as necessary and end shortly before it starts raising the key ECB interest rates. We got a little bit of everything, but when all was said and done I think markets were expecting the bazooka to come out, and we definitely didnt get the bazooka, said Win Thin, global head of currency strategy at Brown Brothers Harriman in New York. The euro was last up 0.33% at $1.1045, after earlier dropping as low as $1.0925. That was the lowest since the single currency fell to $1.0924 on Sept. 3, which was the lowest in more than two years. Central banks globally are fighting against slowing growth and tepid inflation, with the U.S.-China trade war adding further headwinds to the global economy. The safe-haven Japanese yen weakened after Bloomberg News reported that Trump administration officials have discussed delaying or rolling back some tariffs on Chinese goods.
It comes after U.S. President Donald Trump on Wednesday welcomed China’s decision to exempt some U.S. anti-cancer drugs and other goods from its tariffs, and announced a short delay to scheduled tariff hikes on billions worth of Chinese goods.
The greenback was last up 0.07% at 107.89 yen. U.S. data on Thursday showed that underlying consumer prices increased solidly in August, leading to the largest annual gain in a year, but rising inflation is unlikely to deter the Federal Reserve from cutting interest rates again next week to support a slowing economy. It comes after data on Wednesday showed that U.S. producer prices unexpectedly rose in August. This next major economic focus will be retail sales data on Friday.
Currency bid prices at 10:23AM (1423 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low BidPrevious Change
Euro/Dollar EUR= $1.1045 $1.1009 +0.33% -3.70%+1.1069 +1.0928Dollar/Yen JPY= 107.8900 107.8100 +0.07% -2.15%+108.1600 +107.5300Euro/Yen EURJPY= 119.18 118.71 +0.40% -5.58%+119.4900 +117.5800Dollar/Swiss CHF= 0.9896 0.9926 -0.30% +0.84%+0.9945 +0.9883Sterling/Dollar GBP= 1.2339 1.2326 +0.11% -3.28%+1.2357 +1.2284Dollar/Canadian CAD= 1.3177 1.3191 -0.11% -3.38%+1.3217 +1.3176Australian/Doll AUD= 0.6888 0.6861 +0.39% -2.28%+0.6891 +0.6861
Euro/Swiss EURCHF= 1.0933 1.0932 +0.01% -2.85%+1.0949 +1.0853Euro/Sterling EURGBP= 0.8949 0.8929 +0.22% -0.39%+0.8972 +0.8887NZ NZD= 0.6439 0.6411 +0.44% -4.12%+0.6450 +0.6410
Dollar/Norway NOK= 8.9375 8.9554 -0.20% +3.46%+9.0096 +8.9358Euro/Norway EURNOK= 9.8726 9.8615 +0.11% -0.34%+9.9107 +9.8300Dollar/Sweden SEK= 9.6265 9.6722 -0.17% +7.39%+9.7308 +9.6224Euro/Sweden EURSEK= 10.6332 10.6517 -0.17% +3.60%+10.6781 +10.6149
(Editing by Nick Zieminski)