Dollar Higher Against the Euro

The euro bought $1.5784 in afternoon European trading, down from $1.5815 in New York late Wednesday.

The dollar has suffered from worries about the fallout from the U.S. subprime lending crisis and the possibility of a recession.

While the Federal Reserve has cut its key interest rate six times since September in a bid to bolster the economy, the European Central Bank, focusing on inflation risks, has left its rates unchanged.

Lower interest rates can weigh on a nation's currency as traders transfer funds to countries where they can earn higher returns.

On Thursday, the U.S. Commerce Department reported that gross domestic product increased at a 0.6 percent annual rate in the October-to-December quarter, unchanged from a previous estimate a month ago.

While feeble compared with the previous quarter's 4.9 percent rate, the figure at least provided no new unpleasant surprises.

A separate report from the Labor Department provided some comfort by showing that jobless claims fell last week although it did not change the broader picture of a deteriorating jobs market.

In other trading Thursday, the British pound was up to $2.0157 from $2.0060. The dollar was a little lower against the Japanese currency, dipping to 99.88 yen from 100 yen.