Euro up against dollar ahead of US Fed meeting

SINGAPORE: The euro rose against the dollar in Asia Monday after data showed the US economy grew at a slower rate than forecast in January-March, while eyes are on a key Federal Reserve meeting, analysts said.

The euro fetched $1.3052 in mid-morning Asian hours from $1.3029 in late New York trade Friday, while the dollar was changing hands at 97.51 Japanese yen from 97.99 yen.

The single European currency was at 127.20 yen from 127.76 yen on Friday.

The Commerce Department said Friday the world's biggest economy grew 2.5 percent in the first quarter of the year, a solid rebound from the previous three months but slower than expected.

However, the result firmed expectations that the Fed will likely not tighten monetary policy in the near future, as government spending cuts and higher payroll taxes crimp growth.

"Traders are keenly watching out for the outcome of the (policy board) meeting later this week," said Kelly Teoh, market strategist at IG Markets Singapore.

"There is a degree of confidence that there won't be any respite with the quantitative easing policy this year as the global economic outlook still does not look good," she told.