Jan. 15 (Bloomberg) -- The euro rose against the dollar after European Central Bank President Jean-Claude Trichet signaled policy makers will avoid a cut in interest rates at the next meeting in February.

The common currency also strengthened versus the yen after Trichet said today in Frankfurt “the next important rendezvous will be the March meeting.” The euro gained earlier after the ECB reduced its main refinancing rate by 50 basis points to 2 percent, the lowest level in almost six years, to counter the economic slump.

The euro rose to $1.3226 as of 2:08 p.m. in London, from $1.3191 yesterday in New York and as low as $1.3071 earlier. It was at 118.21 yen, from 117.46 yesterday.

“The euro rebounded because investors clearly discounted a rate cut in February,” said James Nixon, an economist in London at Societe Generale SA and former ECB forecaster. “The fact that the next meeting will be in March is a positive surprise for the market, although it’s likely that the rebound will be short-lived.”

To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net

Last Updated: January 15, 2009 09:15 EST