Euro lower at $1.3918 in European morn trading

FRANKFURT (AP) - The euro fell against the dollar Friday as investors pulled out of the safety of American currency bets in favor of equities, as the second-quarter and first-half earnings season kicked off.

The 16-nation euro bought $1.3918 in European morning trading, down from the $1.4036 late Thursday in New York.

The British pound bought $1.6268, down from the $1.6357 the night before.

U.S. aluminum producer Alcoa on Wednesday said it lost $454 million in the second quarter as it kicked off "earnings season" in the U.S - the third consecutive but narrower loss than analysts had expected. Market watchers are anxiously awaiting updates on how the biggest companies performed as they search for hints of an end to the recession.

Equities in Europe moved higher Thursday, while U.S. stock futures pointed up. The dollar has often traded inversely with stocks during the recession.

Also on Thursday, the Bank of England held its key interest rate at 0.5 percent and said it wouldn't seek more money at present to inject into its money system. Cutting interest rates can undermine a currency as investors seek out better returns elsewhere.

In other trading, the dollar bought 92.71 Japanese yen compared with 93.01 Thursday, coming off its five-month low of 92.35.

Based on AOL Money&Finance Reports

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