The euro gained on the US dollar Wednesday on gains in German business confidence this month.

The Ifo business confidence index was up to 103.5 in May, from 102.4 in April against an expected decline, contributing to the argument that the European Central Bank will not cut interest rates anytime soon.

Meanwhile, the dollar was hurt by anticipation of a report due later this week that could show existing home sales in the US down again in April.

At just past 11 a.m. in New York, a euro cost $1.5767, while it took \162.7915 or 80.31p to buy a euro.

The pound was weaker in relation to the greenback after the release of the minutes to the last meeting of the Bank of England’s Monetary Policy Committee, which revealed that the vote to hold UK interest rates steady was a lopsided 8 to 1.

Also hurting the pound was anticipation of a report expected to show that UK retail sales dropped by 0.5 percent in April.

In late morning trade in New York, a pound was worth $1.9633.

The Swiss franc gained on the greenback, on stronger investor confidence in Switzerland in May and on speculation that the Swiss National Bank will not cut interest rates this year as the economy there seems to be surviving the US subprime mortgage crisis with little trouble.

The Swiss currency traded at SFr1.0288 to the dollar and at SFr1.6222 to the euro at late morning in New York.