FRANKFURT (AP) - The euro was steady against the dollar Thursday, but near recent lows as worries about European governments' finances continued to weigh on the common currency.
The 16-nation euro bought $1.4714 in European morning trade, unchanged from its level in New York late Wednesday.
The British pound declined to $1.6217 from $1.6248, while the dollar was also lower at 87.91 Japanese yen from 88.34 yen.
The euro was hit in recent days by mounting worries over the troubled public accounts of eurozone contries such as Spain and Greece.
Greece's government promised Wednesday to step up efforts to reduce the deficit after a ratings agency downgraded the country's debt rating.
The unease was reinforced by Standard & Poor's lowering its credit rating outlook on Spain Wednesday to negative.
"The euro may still suffer as long as European Monetary Union woes continue, fostered by recent downgrades," UniCredit analysts said in a research note.
UniCredit said while a downward test of the $1.45 area is still possible, prospects of no early U.S. Federal Reserve interest rate hike still point to a firmer euro versus the dollar in the first half of 2010.
Investors were also looking to Bank of England and Swiss National Bank interest rate decisions later in the day. Rates were expected to remain unchanged.
On Wednesday, British Treasury chief Alistair Darling delivered a pre-budget report in which he acknowledged that the economy will shrink more this year than previously predicted and increased government borrowing forecasts.
