London, March 16 (Bloomberg) -- The euro fell to its lowest level in threemonths against the dollar as investors became more pessimistic in theiroutlook for euro-zone growth this year. The euro fell as low as 89.55 U.S. cents, its lowest since Dec. 20, from90.28 yesterday. It recently traded at 89.95. The single currency has fallen4.7 percent against the dollar this year. Against the yen, the euro was at110.30 from 110.48. ``In the last couple of weeks, there's been a downgrading of German andeuroland growth hopes'' which has weighed on the euro, said Steve Barrow,a currency strategist at Bear Stearns International. Also, the dollar gainedas recent U.S. economic figures ``convinced economists first-quartergrowth will be positive and not negative.'' Recent economic surveys and reports suggested growth in Germany,Europe's biggest economy and the main trading partner for neighboringstates, may fall short of earlier expectations. The euro has also weakenedon concern the European Central Bank, which yesterday kept interestrates unchanged at 4.75 percent, isn't acting acting fast enough to bolstergrowth, analysts said. German economic growth is likely to slow to 2.3 percent this year from 3percent in 2000, the Hamburg-based HWWA institute said earlier thisweek, reducing its forecast from 2.7 percent, according to Focus-Moneymagazine. The revision follows moves by the DIW and Kiel institutes, which each cuttheir 2001 growth outlook to 2.1 percent from 2.4 percent. The governmentstill expects growth of about 2.75 percent this year. Chief economists from Germany's 10 top private banks this week alsolowered their growth forecasts for 2001 to 2.2 percent from 2.7 percent,predicting slower U.S. growth will dampen demand for exports. Recent reports showed Germany's gross domestic product slowed to 1.9percent in the fourth-quarter, business confidence fell in seven of the eightmonths through January and unemployment rose in the first two months ofthe year. The yen fell to 122.64 against the dollar from 122.34 yesterday. That's itslowest level since July 9, 1999.