* March US durable goods orders give upside surprise,
* ECB's Draghi reiterates warning about QE, negative rates
* Euro/dollar implied vols crushed, at lowest since 2007
* Yen firm as Tokyo shares slip on lack of US-Japan trade
(Recasts with U.S. data, comments, new dateline and byline)
By Daniel Bases
NEW YORK, April 24 The U.S. dollar rose on
Thursday after better-than-expected U.S. durable goods orders
while ECB President Mario Draghi undermined the euro by
reiterating the potential for asset purchases to ward off
Draghi also warned a rising euro, which effectively tightens
the money supply at a time when the European Central Bank is
looking to boost economic stimulus, could force the ECB's hand
on monetary policy measures.
March U.S. durable goods orders rose 2.6 percent, above
economists' forecast for a 2 percent gain. An increase in
initial weekly jobless claims was pegged to seasonal factors,
and therefore discounted by the market.
"The stronger dollar is a reaction better durable goods
orders and how that influences changes to GDP projections," said
Brian Daingerfield, currency strategist at Royal Bank of
Scotland in Stamford, Connecticut.
"This week has been a sort of holding week, and euro/dollar
has been in a tight range because there has been no main driver
to push the consensus view on (U.S. Federal Reserve) or ECB
policy," he said, adding that next week's euro zone inflation
data and U.S. April unemployment report will be key influences
on future ECB policy.
The euro fell 0.15 percent to $1.3795 following the
U.S. data. Earlier, Draghi's comments left the euro weaker, but
an upbeat German IFO survey did help the euro reach a
session high of $1.38435.
Draghi stressed the ECB sees inflation remaining low for a
prolonged period before rising again. But he added the ECB could
embark on a broad-based asset buying plan if the euro zone
inflation outlook worsens.
He warned a rise in the currency that effectively tightened
monetary policy could trigger policy action, including a
negative deposit rate. "The exchange rate is an increasingly
important factor in our assessment of the outlook for price
stability," Draghi said.
But traders said further euro losses were unlikely until the
ECB backed up words with action. The euro is also being
supported by falling excess liquidity in the euro
zone banking system, a factor that keeps overnight rates
elevated and adds to the currency's allure.
The euro fell 0.17 percent to 141.45 yen while the
dollar was unchanged at 102.53 yen.
The yen rose against the dollar as Tokyo shares fell nearly
1 percent after Japanese Prime Minister Shinzo Abe said
a trade deal with the United States had not yet been
New Zealand's dollar hit a one-week high of $0.8638
after its central bank, as expected, hiked its cash rate to 3.0
percent from 2.75 percent and said policy would continue to
tighten to stay on top of inflationary pressures. The kiwi
however fell back to $0.8558, off 0.34 percent.
(Additional reporting by Anirban Nag in London and Masayuki
Kitano in Singapore; Editing by Catherine Evans and Meredith