Dollar gains in thin trading; krona rises
NEW YORK (MarketWatch) -- The dollar rose on Wednesday, with markets subdued on a U.S holiday and traders positioning for major events later this week on both sides of the Atlantic.
The dollar index (DXY) , which measures the greenback against a basket of six currencies, rose to 82.132, from 81.796 in late North American trading on Tuesday.
The euro (EURUSD) softened to $1.2534, from $1.2607.
Volume has fallen about 20% from the prior session, Christopher Vecchio, a currency analyst at DailyFX, said early in the session.
Currency markets were in a midweek lull as U.S. bond and stock markets were for the Independence Day holiday.
The European Central Bank and the Bank of England will hold interest rate meetings on Thursday.
The ECB is widely expect to lower interest rates to a record low, but there's some debate whether policy makers will revive other easing measures, such as holding another long-term refinancing operation -- the program credited with steadying peripheral bond markets beginning late last year.
The BoE will expand its gilt-purchase program, analysts expect.
The U.S. employment report for June is due out Friday. Analysts expect it to show about 100,000 jobs were added last month -- far fewer than is deemed necessary to accelerate economic growth.
"The ECB and BoE will most likely restart easing tomorrow but since these outcomes are largely priced in, the U.S. employment report on Friday should be the greater risk event," said Ilan Solot, a currency strategist at Brown Brothers Harriman.
Also in the news Wednesday was Sweden's central bank -- the Riksbank -- which kept its benchmark rate steady. Read more on Sweden's interest rates.
A minority of analysts had expected a quarter-point cut, said Adam Cole, head of G-10 FX strategy at RBC Capital Markets.
Still, "markets are more than fully priced for a 25-basis point cut by year-end," he wrote in a note.
The Swedish krona rose, pushing the euro to its lowest level since 2000.
The shared currency (EURSEK) fell 1% to buy 8.66 kronor.
The dollar (USDSEK) slipped 0.1% to buy 6.92 kronor.
Among other major currencies, the British pound (GBPUSD) fell to $1.5606, from $1.5699.
Against the Japanese yen (USDJPY) , the dollar bought 79.84 yen, compared to ¥79.86.