* Eyes on ECB interest rate decision at 1145 GMT
* U.S. tax plan offers no surprises, dollar/yen slips off
* Swedish crown falls vs euro after Riksbank extends
* Loonie, Mexican peso bounce as Trump says won't scrap
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Ritvik Carvalho
LONDON, April 27 The dollar steadied against the
euro on Thursday, recovering from investors' disappointment at
U.S. President Donald Trump's tax plans, while Sweden's crown
fell sharply after the country's central bank fed yet more money
into its economy.
Eyes were also on a euro trading tightly within ranges ahead
of the European Central Bank's interest rate decision and news
conference, with traders searching for any drift at the bank
towards reining in its stimulus programme later this year.
The dollar had surged to a four-week high of 111.780 yen on
Wednesday before Trump's tax reform plans were unveiled, but
lost traction soon after as the proposals failed to excite
investors. After a steady recovery in Europe, it was less than
0.1 percent lower on the day at 98.987 by 1112 GMT.
"The focus (for the dollar) should be increasingly back to
the Federal Reserve (policy), but at the same time when it comes
to Trump and his announcements we believe that expectations have
been falling to some extent when it comes to his potential to
surprise," said Manuel Oliveri, currency strategist with Credit
Agricole in London.
"From that point of view, we don't expect any dollar
downside risks on the back of any disappointments with respect
Trump's plan would cut the income tax rate paid by public
corporations to 15 percent from 35 percent and reduce the top
tax rate assessed on pass-through businesses, including small
partnerships and sole proprietorships, to 15 percent from 39.6
The Swedish crown lost ground to the dollar and the euro
following the Riksbank decision to keep interest rates on hold
and extend its bond-buying programme by 15 billion crowns. It
was 1 percent lower to both, at 9.6530 crowns per euro and
8.8526 per dollar.
"Today's (Riksbank) announcement...should only soften the
pace of crown appreciation against euro, but it will not prevent
it," ING currency strategist Petr Krpata wrote in a research
"We still look for lower EUR/SEK over coming months/quarters
and expect the cross to be gradually converging towards the 9.00
crowns per euro."
The euro was last lower by less than 0.1 percent at $1.0898
. It has had a buoyant week, climbing to a 5-1/2 month
high of $1.0951 on Wednesday, as the first round of the French
presidential elections held over the weekend reduced perceived
risk towards the common currency.
The European Central Bank is due to announce its policy
decision at 1145 GMT. It is not expected to move, waiting until
its June meeting to signal any plans to pull back from its
ultra-loose monetary policy.
The Canadian dollar and Mexico's peso bounced after Trump
said he would not scrap the North American Free Trade Agreement
(NAFTA), easing concerns towards U.S. trade protectionism for
now. The loonie was up 0.3 percent to C$1.3542 per
dollar, while the peso strengthened 1.2 percent to
18.95 pesos per dollar.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Reporting by Ritvik Carvalho; additional reporting by Tokyo
Markets Team; Editing by Toby Chopra)