The euro edged lower against the U.S. dollar on Thursday as markets anticipated another interest rate cut by the European Central Bank.
The 16-nation euro was down to $1.3143 in morning European trading from $1.3159 in New York late Wednesday.
The ECB was widely expected to cut its main refinancing rate to 2 percent from 2.5 percent at its monthly meeting later in the day, with traders looking to comments from bank President Jean-Claude Trichet after the decision for hints on the ECB's future course.
"Anything that suggests an aggressive stance will be maintained through the early part of 2009 could well see the common currency eroded further," said James Hughes, a market analyst at CMC Markets in London.
Lower interest rates can weigh on currencies as investors seek higher returns elsewhere.
In other trading Thursday, the British pound climbed to $1.4615 from its level of $1.4587 late Wednesday. The dollar was marginally lower against the Japanese currency, slipping to 89.08 yen from 89.13 yen.