Euro Slightly Higher Against Dollar

Friday, March 28, 2008

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BERLIN —

The euro traded slightly higher against the U.S. dollar Friday, but the pound slipped as a report showed British house prices falling again.

The 15-nation euro bought $1.5798 in late-morning European trading _ up from $1.5780 in New York late Thursday, when the dollar gained as data confirmed that the U.S. economy was still growing in the fourth quarter.

The pound slipped to $1.9944 from $2.0036. The Nationwide mortgage lender reported Friday that house prices in Britain fell 0.6 percent in March _ the fifth straight monthly decline _ and said the annual growth rate in house prices was at its lowest in 12 years.

That underlined evidence of an economic slowdown in the country.

The dollar has suffered from worries about the fallout from the U.S. subprime mortgage crisis and the possibility of a recession, and remains close to an all-time low against the euro.

While the U.S. Federal Reserve has cut its key interest rate six times since September in a bid to bolster the economy and the Bank of England has made more modest cuts, 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.

In other trading Friday, the dollar barely moved against the Japanese currency. It traded at 100.01 yen, compared with 100.00 yen late Thursday.