Dollar Higher Against the Euro, Pound

NEW YORK (AP) -- The dollar gained against the euro and the pound Thursday as data confirmed that the United States economy was still growing in the fourth quarter, albeit weakly.

The euro traded at $1.5780 late in New York, down from $1.5815 Wednesday, while the British pound slipped to $2.0036 from $2.0060.

The dollar was flat against the yen, trading at 100.00 yen, unchanged from Wednesday.

The dollar has suffered from worries about the fallout from the U.S. subprime lending crisis and the possibility of a recession.

While the Federal Reserve has cut its key interest rate six times since September in a bid to bolster the economy, the European Central Bank, focusing on inflation risks, has left its rates unchanged.

Lower interest rates can weigh on a nation's currency as traders transfer funds to countries where they can earn higher returns.

On Thursday, the U.S. Commerce Department reported that gross domestic product increased at a 0.6 percent annual rate in the October-to-December quarter, unchanged from a previous estimate a month ago.

While feeble compared with the previous quarter's 4.9 percent rate, the figure at least provided no new unpleasant surprises.

A separate report from the Labor Department provided some comfort by showing that jobless claims fell last week - although it did not change the broader picture of a deteriorating jobs market.

In other trading Thursday, the dollar rose to 0.9949 Swiss francs from 0.9918 francs, but fell to 1.0165 Canadian dollars from 1.0194 Canadian dollars.


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