Euro declines versus the Dollar (AP)  (07-04-2008)

BERLIN (AP) -- The euro lost some steam versus the U.S. currency on Monday, falling below US$1.57 as the European Central Bank is about to make a decision on European interest rates.

The euro was worth US$1.5676 in morning European trading, down from US$1.5723 in New York late Friday, when it was boosted by U.S. data that showed bigger-than-expected job losses in March.

The British pound, however, pulled back to US$1.9849 from US$1.9916, while the dollar climbed to 102.62 Japanese yen from 102.04 yen.

Worries about a possible U.S. recession have raised prospects that the Federal Reserve may cut interest rates even further, even as the European Central Bank leaves the cost of borrowing unchanged.

The ECB meets to set rates on Thursday, and is expected to keep them on hold again given that euro-zone inflation reached a record 3.5 percent in March -- far above the bank's guideline of 2 percent.

The euro remains within sight of its all-time high of US$1.5904, set March 17.

 Source: AP