The dollar was little changed
against the euro as reports showed the U.S. economy grew less than forecast in
the second quarter and initial jobless claims rose last week to a five-year
high.
U.S.
gross domestic product increased at an annual rate of 1.9% in the second
quarter, the Commerce Department reported today. The median forecast of
economists was for an advance of 2.3%. The report also showed a recession may
have begun in the final three months of 2007, as GDP was revised to show a
contraction in the period.
The euro strengthened earlier versus the dollar after the European Union
statistics office reported that the euro zone's inflation rate rose to 4.1
percent this month, the highest since 1992. The European Central Bank raised
its main refinancing rate to 4.25 percent on July 3, the highest since 2001.
EUR/USD fell from $1.5590
to $1.5550. Later rate set stable within the $1.5550/80 range.
GBP/USD printed high
on $1.9840 before falling sharply to session low on $1.9752.
USD/JPY declined from
Y107.90 to Y107.30.