Euro steady in European trading

BERLIN: The euro was steady against the dollar on Wednesday after sinking to its lowest level in three months the previous day amid worries about European debt problems.

The 16-nation euro bought $1.4528 in morning European trading, barely changed from the $1.4529 it bought in New York late Tuesday. Earlier in Tuesday's session, the euro fell as low as $1.4504 — its lowest since Sept. 10.

The British pound also was near-static at $1.6258, up marginally from $1.6256. The dollar edged down to 89.69 Japanese yen from 89.74 yen.

The dollar has rebounded strongly in December as traders lock in their gains on the euro's rise earlier in the year and investors wonder if the U.S. recovery will be faster and stronger than expected.

The euro has been weighed down by worries about public finances, particularly Greece's huge debts.

The Federal Reserve was expected to keep its benchmark interest rate near zero later Wednesday. Investors will watch for changes in the central bank's language to see if the Fed signals it will start raising rates soon.