Euro down slightly against U.S. dollar

The 13-nation euro was down slightly Thursday against the U.S. dollar, which regained some ground lost the previous day after the U.S. Federal Reserve's rate decision.

In morning trading, the euro bought US$1.3010, down from US$1.3028 in New York late Wednesday. The British pound rose to US$1.9653 from US$1.9647, while the dollar dropped to 120.40 Japanese yen from 120.71 yen.

As widely expected, the Federal Reserve on Wednesday left interest rates at 5.25 percent for the fifth consecutive time, but the accompanying statement's moderate tone failed to inspire any dollar-buying by investors.

Higher interest rates, a weapon against inflation, support a currency by making some assets denominated in that currency more attractive to investors, reports AP.

The central bank left the door open for future rate hikes by reiterating that it was more worried about inflation risks than weak growth, but some analysts expected a more hawkish tone after a recent slew of strong economic data.

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