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CORRECTED - CORRECTED-FOREX-Euro dips after previous day's rally

Published 04/23/2009, 09:15 PM
CSGN
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(Corrects third paragraph to say ... $1.2885 ..., not... $1.2888. Corrects ninth paragraph to say ... unlikely ..., not ... likely)

* Euro dips, gives back a bit of Thursday's gains

* Data shows signs of moderation in euro zone's recession

By Masayuki Kitano

TOKYO, April 24 (Reuters) - The euro dipped against the dollar on Friday due to profit-taking, giving up some of the gains it made the previous day on signs that a euro zone recession was no longer worsening.

The dollar was nursing the losses it suffered on Thursday, when a net quarterly profit at Credit Suisse and a six-month high in a key euro-zone manufacturing index bolstered risk appetite, eroding safe-haven flows into the greenback.

The euro, which rose more than 1 percent against the dollar on Thursday and has pulled up from a one-month low of $1.2885 hit on trading platform EBS earlier this week, may face some profit-taking pressure on Friday, said a trader for a Japanese foreign exchange broker.

"Unlike yesterday, there probably won't be a one-way rise in the euro," the trader said.

The euro dipped 0.1 percent to $1.3128. Against the yen, the euro fell 0.3 percent to 128.45 yen, up from a one-month low of 126.10 yen hit earlier this week.

The dollar dipped 0.1 percent against the yen to 97.86 yen.

The dollar could draw some support against the yen if there is dollar-buying from Japanese importers ahead of the 0100 GMT Tokyo fixing, said the trader for a Japanese foreign exchange broker.

Market players are also focusing on the possibility of yen-selling flows from Japanese investment trusts that conduct foreign-currency denominated investment, the trader said.

A meeting of Group of Seven finance ministers in Washington on Friday was seen as unlikely to be a major focal point for the currency market, the trader said.

A senior official at Japan's Ministry of Finance said earlier this week that currencies would not be a major issue at the forthcoming G7 meeting. (Editing by Edwina Gibbs)

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