Euro down to $1.5072 in European trade

FRANKFURT: The euro was slightly lower on Friday after the European Central Bank left interest rates steady and predicted an uneven economic recovery.

The 16-nation euro slipped to $1.5072 in European morning trade from $1.5092 late Thursday in New York.

The British pound rose to $1.6591 from $1.6566, while the dollar fell to 88.05 Japanese yen from 88.21 yen.

After the ECB left its key refinancing rate unchanged at 1 percent Thursday, President Jean-Claude Trichet said the euro-zone economy will grow at a moderate pace next year, but the recovery will be uneven and subject to risks.

Trichet said the ECB has an interest in a strong dollar and confirmed that the bank will start winding down its extraordinary measures to provide markets with liquidity.

Although the ECB has a higher interest rate than the Bank of England and the U.S. Federal Reserve, Trichet's remarks apparently led some investors to move back into the perceived safety of dollar investments.

Higher interest rates can support a currency as investors move assets to where they earn better returns.

Investors also were looking forward to a U.S. jobs report due later Friday for further clues on the economy's direction.