The euro dropped back below the key level of US$1.5 in Asian trade yesterday after Chinese economic growth data failed to meet some investors' high expectations, dealers said. The euro dropped to US$1.4979 in Tokyo afternoon trade, from US$1.5016 in New York late on Wednesday, when it had topped 1.5 for the first time since August 2008. The euro gained to 136.96 yen from 136.60. The dollar rose to 91.44 yen from 90.96. The European currency dropped after official data showed the Chinese economy grew at an 8.9 percent year-on-year pace in the third quarter - a strong performance but slightly weaker than the market had been expecting. "The euro-selling was a classic case of 'buy on the rumour, sell on the fact'," Yuji Saito, head of the foreign exchange group at Societe Generale in Tokyo, told Dow Jones Newswires. Many market players had speculated that the Chinese figures might produce a positive surprise that would boost the risk-sensitive euro, he said. The U.S. dollar has been suffering recently from the near-zero interest rate policy of the U.S. Federal Reserve. Analysts say this fuels the so-called "carry trade." Against Asian currencies, the dollar rose to 1,189.75 South Korean won from 1,178.00 a day earlier, to 1.3962 Singapore dollars from 1.3939 and to 9,477.50 Indonesian rupiah from 9,440.00. The greenback gained to 47.13 Philippine pesos from 46.97, to NT$32.40 from NT$32.35 and to 33.47 Thai baht from 33.42.

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