Dollar keeps gains from upbeat US growth data

TOKYO, Nov 30 (Reuters) The dollar steadied on Thursday, keeping gains made on upbeat US growth data that dampened expectations in the market that the Federal Reserve could trim interest rates early next year.

Data on Wednesday showed that the US economy expanded at a 2.2 per cent annual rate during the third quarter, faster than the 1.6 per cent pace first estimated and above Wall Street's expectations for a 1.8 per cent gain.

The figures provided relief for a currency dragged to a fresh 20-month low against the euro and two-year low versus sterling every day this week on prospects for the dollar's rate advantage to dwindle further.

The dollar was also brought back on profit-taking and after the market saw that ''selling didn't work'', said a senior dealer for a foreign investment bank.

In early Tokyo trade, the euro was at $1.3155 little changed from the level in late U.S. trade on Wednesday, when it hit a fresh 20-month high of $1.3218.

The euro came under pressure after European officials warned about the single currency's surge since the middle of last week.

French Prime Minister Dominique de Villepin said the euro's rise was weighing on competitiveness. French Finance Minister Thierry Breton said strong movements in currencies are never good, reiterating a call for collective vigilance.

Sterling was flat at $1.9465 off a two-year high of $1.9546.

The dollar bought 116.40 yen It struck a three-month low of 115.40 yen at the start of the week.

The euro was at 153.05 yen in sight of the record high of 153.43 yen registered on electronic trading platform EBS on Wednesday.

REUTERS SBA BST0622