Euro turns higher, Bunds fall after ECB rate cut

LONDON Thu May 2, 2013 7:56am EDT

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LONDON May 2 (Reuters) - The euro quickly recovered from brief falls against the dollar, hitting a session high on Thursday after the European Central Bank cut interest rates, a decision which had been widely expected.

German Bund futures also fell, while European stocks pared earlier gains.

The ECB cut its main refi rate by 25 basis points to a record low of 0.5 percent and left the deposit rate unchanged.

The euro fell to $1.3115 from around $1.3150 just before the decision. But it then recovered, hitting a session high of $1.32105, taking it near a two-month peak of $1.3243 hit on Wednesday.

German Bund futures fell in choppy trading. They last stood down 21 ticks on the day at 146.37, having stood at 146.52 shortly before the rate decision.

The pan-European FTSEurofirst 300 index briefly extended its earlier gains to trade up by 0.2 percent after the ECB's decision, before then paring those gains to trade flat.

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