REFILE-FOREX-Euro rises to session high above $1.58
(Refiles to fix typo in headline)
NEW YORK, March 25 (Reuters) - The euro extended gains versus the dollar on Wednesday, rising to session highs, helped by comments from European Central Bank Jean-Claude Trichet who said that euro zone interest rates were at the right level.
The euro rose to an intraday peak of $1.5809 EUR=, up 1.2 percent on the day, and within striking distance of a historic high of $1.5906 touched last week. The dollar was down 0.8 percent at 99.26 yen JPY= after earlier slipping to a session low of 98.900 yen.
Trichet told a monthly French magazine that the current level of interest rates in the euro zone was the right one, dashing expectations that the ECB would ease monetary policy soon.
"It's an expression of the contrasting dynamics between the U.S. and euro zone economies. It's as simple as that," said Asraf Laidi, chief market analyst at CMC Markets in New York.
"Trichet's comments are "just another way of saying markets should not bet on a rate cut anytime soon," Laidi said.
(Reporting by Lucia Mutikani and Steven C Johnson; Editing by Diane Craft) ((lucia.mutikani@reuters.com; 1 646 223 6314; Reuters Messaging: lucia.mutikani.reuters.com@reuters.net))
