Euro Edges Higher Against Dollar (AP) (11-02-2008)

BERLIN (AP) -- The European common currency and the British pound were mixed versus the U.S. dollar on Monday following the vow by top economies to take action in order to restore confidence in global markets.

The euro was worth US$1.4566 in morning European trading, having gained slightly from US$1.4506 in New York late Friday, while the pound was down to US$1.9432 from US$1.9455 on Friday.

Reports on consumer price inflation and Britain's quarterly inflation report are due and they are expected to offer some insight as to whether the Bank of England will continue to lower its benchmark interest rate.

The Group of Seven industrialized countries warned Saturday of risks in the troubled American economy and housing sector, but leavened that with assurances that the world's biggest economy would grow this year, albeit at a slower pace.

World financial markets have been battered amid worries about a possible U.S. recession and uncertainty about the subprime mortgage crisis that has led to billions in losses at major banks. A main thrust of Saturday's meeting was to reassure the world that the U.S. wasn't in recession.

In other trading Friday, the dollar fell to 106.62 Japanese yen from 107.38 Japanese yen.

Source: AP