Euro dips against dollar in European morning trade

Euro lower at $1.4825 in European morning trade but dollar seen weakening again

• On 4:19 am EDT, Friday October 30, 2009

FRANKFURT (AP) -- The euro edged lower against the dollar Friday but the American currency was expected to remain weak as improving economic news encouraged investors to leave the safety of the dollar.

The 16-nation euro bought $1.4825 in European morning trade, down from the $1.4845 late Thursday in New York.

The British pound was also lower, buying $1.6543 compared with $1.6548, while the dollar fell to 91.12 Japanese yen from 91.49 yen late Thursday in New York.

On Thursday, the U.S. Commerce Department said economic activity grew at a 3.5 percent pace in the third quarter, the strongest rate of growth in two years.

That signals the worst U.S. recession since the 1930s has ended, although rising unemployment and tight lending to consumers and businesses will continue to weigh on the country's growth.

Investors tend to sell the safe-haven dollar in favor of riskier, higher-yielding currencies and stocks when strong economic reports, corporate earnings or other developments imply the economy is improving.

The euro versus the dollar "will again be lifted above $1.4880 by U.S. data, putting $1.50 back on the radar screen in the next sessions, although still negative euro area inflation could be a counterweight to risk appetite," UniCredit analysts said in a Friday research note.

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