Euro Nearly Unchanged At $1.4975 In European Trade

FRANKFURT (AP) — The euro was nearly unchanged against the dollar Wednesday as Asian markets rose and investors appeared to continue their pause in their sell-off of the American currency, which was hit earlier in the week by expectations that U.S. interest rates will be left low for some time.

The 16-nation euro bought $1.4975 in European morning trade, compared with $1.4978 late Tuesday in New York.

The British pound and Japanese yen were also nearly unchanged compared with the dollar, with the pound trading at $1.6730 compared with $1.6737, while the dollar bought 89.76 yen compared with 89.77 yen late Tuesday in New York.

Asian stock markets were mostly higher Wednesday after figures from China and Japan showed the region's two biggest economies were on track to recovering from the global downturn.

But the region's advance, its fourth in a row, appeared to slow as investors treaded cautiously following recent gains and a lackluster session on Wall Street.

Investors around the world are also seeing the dollar as weaker than other currencies because of U.S. interest rates near zero and huge budget deficits. They're using it for what's known as "carry trade." That means traders borrow cheaper dollars to make other investments such as in emerging-market currencies, oil or equities.