2 Feb 2009, 1420 hrs IST, AGENCIES
FRANKFURT: The Euro fell against the dollar Monday as investors expected the European Central Bank to hold interest rates steady this week. The 16-nation euro fell to $1.2718 in European morning trading, down from $1.2794 late Friday in New York. The British pound also fell to $1.4307 from $1.4456 Friday. ``The new month has got under way with both the pound and euro slipping amid mounting speculation as to how the respective rate verdicts from central banks will influence values later in the week,'' currency analyst James Hughes wrote in a research note. ECB President Jean-Claude Trichet has indicated the bank will likely hold rates steady at 2 percent at Thursday's meeting. ''Our next important rendezvous will be in March, even if we are not precommitted,'' he said at the bank's January meeting . The dollar will likely gain against other currencies as a ``safe-haven'' as world economies continue into recession, analysts said. Lower interest rates can also drive investors from a currency as they move funds where they earn better returns. The dollar was slightly lower against the Japanese yen Monday, at 89.34 compared with 89.88 yen late Friday in New York.