21 December 2001, 17:19  EURO WIDENS LOSS TO MORE THAN 1 PCT VS. DLR BELOW $0.8915

NEW YORK, Dec 21 - The euro fell more than 1 percent against the dollar to a 1-1/2 week low in thin trading volume as investors squared positions and took profits heading into the Christmas and New Year holidays, analysts said. The euro's losses came as traders shrugged off a downward revision of U.S. third quarter gross domestic product, which showed the U.S. economy shrank at a 1.3 percent pace, below a survey forecasting a drop of 1.1 percent. The euro traded as low as 89.06 cents, breaking through resistance seen by dealers in the 89.15/20 cents area. The European currency traded in early New York activity. "I am a bit concerned that this is just Friday profit-taking on the euro and position adjustments ahead of what is going to be a long and very thin holiday," said Eric Nickerson, chief currency strategist at Bank of America in New York. "I don't think third quarter GDP matters a great deal as that's history now." said Nickerson.

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