FRANKFURT, Germany (AP) — The dollar gained on the euro and the pound Wednesday as markets awaited key interest rate decisions by the European Central Bank and Bank of England later this week.

Analysts expect that the both banks are likely to keep their respective interest rates unchanged at 4 percent and 5.75 percent.

The 13-nation euro currency bought $1.4732 in morning European trading, down slightly from the $1.4766 it bought in New York late Tuesday and well off its record high of $1.4966 set on Nov. 23.

The pound was also lower, buying $2.0397 in morning trading, down from the $2.0574 it bought late Tuesday in New York.

The meetings come amid renewed fears that the U.S. subprime crisis could spread further globally, and debate over whether rate cuts could help stem such concerns.

"Interest rate verdicts are going to continue to dominate the thoughts of currency traders as the last ECB and BoE verdicts of the year are due tomorrow," said James Hughes, an analyst with CMC Markets in London. "Each item of data holding inflationary messages can expect to remain under scrutiny."

In addition to Britain and the euro zone, the U.S. Federal Reserve meets next week to discuss interest rates, with many convinced it may lower its rate by half a percent to 3.5 percent. The mortgage problems in the U.S. that have tripped up borrowers and caused a credit crisis among banks are fueling fears about the health of the U.S. economy.

Concerns over the huge U.S. trade deficit, which leaves more dollars in the hands of foreigners, have also weighed on the dollar.

Lower interest rates can jump-start an economy, but they can also weaken a currency as investors transfer funds to countries where they can earn higher returns.

In other trading, the dollar was lower against the Japanese yen, slipping to 110.19 yen from 110.47 yen on late Tuesday in New York.