Euro falls vs dollar to $1.3200

FRANKFURT (AP) - The euro fell against the dollar Wednesday as investors anticipated another interest rate cut from the European Central Bank when it meets Thursday.

The 16-nation euro bought $1.3200 in European morning trading, down from the $1.3283 late Tuesday in New York.

The British pound bought $1.4335 compared with $1.4347 the night before.

Markets are expecting the European Central Bank to cut its benchmark interest rate by half a percentage point to a new record low of 1 percent.

Cutting interest rates can undermine a currency as investors transfer funds to where they can earn better returns.

Also Thursday, twenty of the world's industrialized and emerging nations will convene in London for a follow-up summit to an economic meeting in Washington in November.

In other trading the dollar bought 98.82 Japanese yen, compared with 99.07 late Tuesday in New York.

Based on AOL Money&Finance Reports

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