Euro dips against dollar to $1.3178

Euro dips against dollar to $1.3178 on cautious optimism from US Federal Reserve

The euro inched lower against the dollar Thursday, as the U.S. currency rode a series of cautiously optimistic remarks out of Washington suggesting the U.S. economy is no longer in free fall.

The 16-nation currency bought $1.3178 in early Thursday trading, down from $1.3191 late Wednesday in New York. The British pound slipped to $1.4959 from $1.4961.

The dollar dipped against the Japanese yen, however, to 98.75, down from 99.20 yen.

In Washington, the U.S. Federal Reserve said Wednesday there were some faint signs that the steep plunge in economic activity that began last fall is starting to level off.

The Fed's latest survey of business conditions nationwide found five of its 12 regional banks reporting a moderation in the pace of the economic decline. The survey, known as the Beige Book, struck a slightly more positive tone than last month's report, which described an economy plunging rapidly after the financial shocks that occurred last fall.