Euro up against dollar at $1.3968

BERLIN -- The euro climbed against the dollar Thursday after the European Central Bank lent record funds to banks to jump-start credit markets and the U.S. Federal Reserve left its interest rates unchanged on Wednesday.

The 16-nation euro bought $1.3968 in morning European trading, up from $1.3921 late Wednesday in New York.The ECB said Wednesday that it would lend euro442 billion ($617.8 billion) to banks for 12 months at a flat rate of 1 percent to help boost lending on the continent. The ECB's offer was fully subscribed, suggesting banks still need cash, but that the financial sector be flushed with funds.

"One notable aspect was the ability of the euro to weather the potentially adverse impact of the ECB's latest initiative," said Daragh Maher, deputy head of global forex strategy at Calyon.

He said that could be because "the market took solace from the fact that the central bank is aggressive on the policy front" and facing risks to growth.

The euro was also helped somewhat against the dollar after the Fed suggested it would not raise interest rates any time soon or expand its monetary stimulus policies. link.....