Dollar mixed ahead of central bank meetings

NEW YORK, Aug 7 (AFP): The dollar Wednesday dropped against the yen and the euro, but gained on the British pound ahead of central bank meetings in Britain, Japan and Europe later this week.

The euro, which had dropped to its lowest level in eight months Tuesday, rallied slightly against the dollar Wednesday.

While no new ECB stimulus measures are expected this time, some analysts say Thursday's European Central Bank meeting could spark more euro selling if ECB chief Mario Draghi and others hint at the need for further action.

But the euro could also be primed to advance, said Joe Manimbo, senior market analyst Western Union Business Solutions.

"With so many in the market betting on further euro weakness, the slightest trigger, like a less dovish sounding ECB, could see the euro catch a bounce," Manimbo said.