Midday trade in New York: euro rallies

The euro gained in volatile trading on Thursday, boosted by reports the ECB was buying bonds, but uncertainty over the outlook for peripheral euro zone countries should keep the currency under pressure. Reports the European Central Bank was buying Portuguese and Irish debt followed investor disappointment ECB President Jean-Claude Trichet did not announce a more aggressive policy response to ease the eurozone debt crisis.
In midday New York trading, the euro was up 0.6 percent at $1.3224, with session lows at $1.3060 in the wake of Trichet's remarks. Traders cited stops right above $1.3225. The dollar was down 0.6 percent against the yen at 84.20, earlier weighed down by a rise in the latest US weekly jobless claims.