The dollar was slightly lower against the euro on Friday after losses on Thursday due to hawkish comments from the head of the European Central Bank which propped up the euro.

ECB President Jean-Claude Trichet said yesterday that inflation would remain high for some time, lowering expectations that the bank would lower interest rates soon.

The ECB has held rates steady since last year as the Federal Reserve Bank, its U.S. counterpart, has lowered rates quickly to counter a slowing economy.

The dollar traded at $1.5436 7:59 a.m. in London, from $1.5414 in late New York trading.

Meanwhile, the dollar fell against the euro amid concerns over financial markets losses which led to a decline in equities.

The largest U.S. insurer, American International Group Inc said on Thursday it would have to raise $12.5 billion after reporting large write-downs due to a weak housing market.

The U.S. currency traded at 103.48 yen from 103.74 yen late yesterday. The euro was at 159.74 yen versus 159.72 on Thursday.

European union European central bank