Summary Dollar fell sharply against the euro and yen after ECB kept monetary policy unchanged.
WASHINGTON (AFP) - The US dollar fell sharply against the euro and yen Thursday as sentiment abandoned the greenback after the European Central Bank and the Bank of England both kept monetary policy unchanged.
The dollar lost 1.2 percent on the euro, and lost more than three percent on the yen during the day before climbing back a little.
At 2100 GMT, the euro was trading at $1.3243, compared to $1.3089 late Wednesday, after having topped $1.33, its highest level in three months, during the day.
The dollar bought 97.07 yen, down from 99.16, after having traded as low as 95.88 yen during the day.
The British pound also did well, rising 1.3 percent to $1.5599 from $1.5394.
The shift away from the dollar came as confidence in US growth ebbed a little after some slightly weaker data, with expectations down for Friday's Labor Department numbers on US job creation and unemployment in May.
Meanwhile, the two European central banks suggested slightly more optimism as they held back from adding to stimulus.
"While the ECB left interest rates unchanged at 0.50 percent, slightly more optimism from Mario Draghi was enough to send the currency to a three-week, almost four-week high," said Kathy Lien of BK Asset Management.
"While the ECB is keeping monetary policy easy and all of their options open, their brighter outlook means they aren't poised to pull the trigger on additional stimulus anytime soon, which was enough for forex traders to buy euros."
The yen's move was its largest in one day since the Fukushima earthquake in March 2010, said Christopher Vecchio of Daily FX.
Given the size of the swing, he said, "We would not rule out a major reversal, extending through 98.60 to 100.00, should tomorrow's (US jobs) report post a sizeable surprise."
The US dollar also fell on the Swiss franc, to 0.9296 francs from 0.9422.
