LONDON, Feb 21: The dollar was under more pressure on Thursday after another set of weak US economic data added to concerns that the world’s largest economy risks falling into recession.

Dealers said the dollar was hit badly by news that a regular Federal Reserve Bank of Philadelphia report on regional manufacturing had fallen to minus 24 in February from minus 20.9 in January, twice as low as expected.

The headline index was also at its lowest level since the 2001 recession and was taken to mean the US economy was on the brink of contraction, if not already there.

“The further deterioration ... in February confirms that the collapse in the index last month was not statistical noise,” said Paul Ashworth at Capital Economics.

“As far as this indicator is concerned, a recession, and a severe one at that, is already under way,” he said.

In European trade, the euro was at $1.4814, touching levels not seen since earlier this month, and up sharply from $1.4712 in New York late Wednesday.The dollar fell to 107.61 yen from 108.13.

Dealers said there was more bad news for the dollar after US leading indicators dropped for a fourth month in a row in January and the White House cut its growth forecasts for the year.

Meanwhile, the pound sterling got a boost from surprisingly strong British retail sales data, which helped eased concerns the economy is at risk of a sharp slowdown, allowing the central bank to mark time on interest rates.—AFP