Euro pares losses vs dollar, still down on day

The euro pared losses against the dollar on Thursday after the International Energy Agency said it would release 60 million barrels of oil stocks, though traders said the dollar looked likely to hold its gains in the short run.

 The euro rose to $1.4180 EUR from around $1.4155 but was still down 1.3 percent on the day.

 The U.S. Department of Energy said it would contribute to the oil stock release to make up for the loss of supply from Libya and other countries.

 "It could be a signal of the overall level of concern about a slower global economy," said Omer Esiner of Commonwealth Foreign Exchange.

 "We're seeing the euro pare some losses, but in the long run, if anything, lower oil prices should be a euro negative as it has been energy and food prices that are driving euro zone inflation," he added. "This may be a knee-jerk, risk-positive reaction." more