The U.S. dollar made slight gains Thursday on the euro, following a statement from U.S. President George W. Bush that the U.S. budget deficit would be addressed.
The euro was at US$1.3044 in midday European trading, down from US$1.3070 late in New York on Wednesday. The dollar gained slightly on the British pound, which was at US$1.8807 from US$1.8818. The dollar bought 103.44 yen, up from 102.97 yen the day before.
The 12-nation euro soared from about US$1.20 in September to an all-time high of US$1.3667 at the end of December on increasing concerns about the ballooning U.S. trade and budget deficits.
At a news conference Wednesday, Bush said he would present a spending plan to Congress next month that would cut the federal deficit in half over the next five years.
Currency traders also are looking ahead to the Feb. 4-5 meeting in London of the Group of Seven finance ministers and central bank chiefs, where the issue of the slumping dollar is expected to be taken up, at least on the sidelines.