Euro lower against the dollar in the wake of Fed decision

BERLIN (AP) - The euro fell against the U.S. dollar Thursday in thin European trading after the U.S. Federal Reserve Bank cut its benchmark interest to 2 percent, its lowest point in nearly four years.

The 15-nation currency bought $1.5534 in Europe, down from the $1.5642 it purchased in New York late Wednesday. The British pound also drifted lower to $1.9876 from $1.9893 in late New York trading.

The dollar bought 104.01 Japanese yen, down from 104.17 late Wednesday.

Many European markets were closed for Ascension Day.

The U.S. central bank has lowered the key rate by 3.25 percentage points since last summer to 2 percent, while the European Central Bank has left rates unchanged at 4 percent.

Though lower interest rates can spur a nation's economy, they can weigh on its currency as traders transfer funds to countries where they can earn higher returns.