The euro was lower against the dollar Thursday as markets priced in expectations of a European Central Bank rate cut later Thursday.
The 16-nation euro bought $1.3309 in European morning trading down from the $1.3348 late Wednesday in New York.
The British pound bought $1.5151 compared with $1.5132, while the dollar bought 98.54 Japanese yen compared with 98.32 yen late Wednesday in New York.
Investors are anticipating the ECB will cut its main interest rate by a quarter point to 1 percent, as it tries to boost the euro zone economy. The current 1.25 percent is already the lowest level in the bank's history
Lower interest rates often drive a currency lower as investors move funds to where they earn better returns elsewhere.
The dollar also moved lower Wednesday as investors started to return to the stock market, as some companies have recently reported more positive news about their earnings. Positive news on employment and banks' balance sheets in the U.S. also lent to the optimism.
The S&P 500 this week posted a gain for the year on hopes that the worst of the recession has passed.
