Euro falls after ECB cuts economic forecast

Euro falls against the dollar after the European Central Bank cuts its economic forecast

Associated Press

NEW YORK (AP) -- The euro fell against the dollar Thursday after the European Central Bank cut its forecast for economic growth next year for the 17 countries that use the euro.

The euro fell to $1.2964 Thursday from $1.3079 late Wednesday.

The ECB said it expects the euro zone's economy to contract 0.3 percent next year. It had previously predicted growth of 0.5 percent.

ECB chief Mario Draghi said that "weak activity is expected to extend into next year," with a gradual recovery later in 2013. Draghi gave little sign he was leaning toward any more steps to stimulate growth.

In other trading, the British pound fell to $1.6048 from to $1.6099.

The dollar was little changed against the Japanese currency, edging up to 82.36 yen from 82.35 yen. It rose to 0.9330 Swiss franc from 0.9262 Swiss franc.

The dollar rose to 99.16 Canadian cents from 99.13 Canadian cents.

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