BERLIN (AP) - The dollar held steady against the euro on Wednesday following U.S. home sales data that offered new hope the economic recovery may be gaining ground. The 16-nation euro bought $1.4254 in morning European trading, unchanged from its level in New York late Tuesday. The British pound slipped to $1.5953 from $1.5967. The dollar was marginally lower against the Japanese currency, slipping to 91.70 yen from 91.79 yen. In the U.S. on Tuesday, the National Association of Realtors said home resales rose to their highest level in nearly three years in November as homebuyers raced to take advantage of a federal tax credit. The government said the economy grew at a 2.2 percent pace in the third quarter, slower than previous estimates. Still, analysts expect the economy to grow by nearly 4 percent in the current quarter. Improving economic data raises expectations that the U.S. Federal Reserve may move sooner rather than later to increase interest rates from their current near-zero level. The euro has been hit by worries about government debt levels in some euro zone countries, above all Greece. Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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