The U.S. dollar fell for a second day on Thursday as markets moved toward risk while sorting a raft of central bank policy statements for clues to coming differences in interest rates and economic strength. The dollar index against major currencies was down 0.2% for the day in morning trading in New York after meetings of central banks including those of Europe, England, Switzerland and Norway. The British pound rose as much as 0.8% on the dollar after the Bank of England became the first major central bank to raise interest rates since the beginning of the pandemic. read more The euro climbed more than 0.3% for a second day after the European Central Bank said it would continue to cut its bond purchases. read more "What a day," Marc Chandler, chief market strategist at Bannockburn Global Forex said of the volatility. The moves suggested that traders with short positions in the euro and sterling were closing out their bets, Chandler said. The euro moves against the dollar also seem to be tracking changes in the spread between yields of two-year government securities on the two continents, Chandler said. The euro was last up 0.1% to $1.1304. The ECB said it will cut bond buys under its 1.85 trillion euro Pandemic Emergency Purchase Programme and will end the scheme as expected in March. The ECB also outlined continuing support, that was less than some analysts expected, through its longer-running, but more rigid, Asset Purchase Programme (APP). "The ECB has surprised the market with the relatively contained size of APP monthly purchases going forward," said Jane Foley, head of FX strategy, at Rabobank in London. Still, she said, "there are dovish elements in its statement with respect to the reinvestments of the PEPP and the fact that it could be resumed." Dovish elements in central bank statements are giving markets confidence to move toward riskier trades. Sterling was last up 0.4% to $1.3323. The U.S. Federal Reserve said on Wednesday that it will end its pandemic-era bond buying in March, paving the way for an expected three interest rate hikes in 2022. read more . The dollar index initially rose on that news, hitting a three-week high. But the dollar bidding gave way to risk-on moves toward other currencies. Still, the dollar index at 96.1460 on Wednesday remained near levels last seen in July 2020. The Swiss National Bank kept its ultra-low interest rates unchanged while the Norges Bank raised its benchmark rate. The SNB kept its key rate at -0.75% and the Norges Bank raised its benchmark interest rate to 0.50% and said more hikes will likely follow next year. read more Cryptocurrency bitcoin slipped less than 1% to $48,622. ======================================================== Currency bid prices at 10:32AM (1532 GMT) Description RIC Last U.S. Close Previous Session Pct Change YTD Pct Change High Bid Low Bid Dollar index 96.1460 96.3790 -0.23% 6.851% +96.4490 +95.8500 Euro/Dollar $1.1304 $1.1296 +0.08% -7.47% +$1.1361 +$1.1282 Dollar/Yen 113.7500 114.0500 -0.25% +10.11% +114.2450 +113.5600 Euro/Yen 128.60 128.79 -0.15% +1.32% +129.6300 +128.5500 Dollar/Swiss 0.9225 0.9244 -0.19% +4.28% +0.9256 +0.9200 Sterling/Dollar $1.3323 $1.3263 +0.44% -2.49% +$1.3374 +$1.3243 Dollar/Canadian 1.2796 1.2832 -0.28% +0.49% +1.2857 +1.2764 Aussie/Dollar $0.7194 $0.7173 +0.31% -6.47% +$0.7224 +$0.7146 Euro/Swiss 1.0426 1.0437 -0.11% -3.53% +1.0466 +1.0426 Euro/Sterling 0.8482 0.8512 -0.35% -5.09% +0.8528 +0.8454 NZ Dollar/Dollar $0.6807 $0.6788 +0.29% -5.19% +$0.6833 +$0.6759 Dollar/Norway 8.9940 8.9945 +0.04% +4.79% +9.0310 +8.9525 Euro/Norway 10.1670 10.1732 -0.06% -2.87% +10.2192 +10.1183 Dollar/Sweden 9.0463 9.0767 -0.23% +10.37% +9.0995 +9.0053 Euro/Sweden 10.2268 10.2508 -0.23% +1.49% +10.2723 +10.2163 Reporting by David Henry in New York and Joice Alves in London; Editing by Hugh Lawson and Andrea Ricci Our Standards: The Thomson Reuters Trust Principles.