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Issue #1: America's Money - Everyday on CNN

NEW YORK (CNNMoney.com) -- The dollar gained against the euro Thursday, holding a 9-week high against the European currency, after the European Central Bank left a key interest rate unchanged.

While the move was widely expected, it confirmed worries about slower economic growth overseas.

"It's not that the U.S. data has improved dramatically. I think it's that the economic picture is deteriorating dramatically elsewhere," said Vassili Serebriakov, currency strategist with Wells Fargo.

The euro fell to $1.5319 Tuesday afternoon from $1.538 late Wednesday -- the lowest level since June 13, when the euro bought $1.5303, according to DailyFX.com.

The dollar declined against the Japanese yen, dropping to ¥109.39 after surging to a 7-month high of ¥109.59 on Wednesday.

Euro economy: The European Central Bank said it would hold a key interbank lending rate at 4.25%, suggesting that it was concerned about liquidity in the 15-nation euro zone.

While the U.S. Federal Reserve had previously slashed rates to make cash available to a struggling banking system, its European counterpart had raised rates to ward off inflation.

Because the rate decision was expected, the dollar was initially lower versus the euro, with the European currency reaching as high as $1.5492 in early trading. However comments from ECB president Jean-Claude Trichet dashed some expectations that the rate hikes would be imminent.

Trichet told reporters, after the announcement, that weaknesses in the European economy were emerging. He further noted that inflation in the region, which is sitting at 4.1%, would likely remain high for the near future.

"The statement was fairly neutral in tone, so those hawks who expected a [future] rate increase were disappointed," said Gareth Sylvester, senior currency strategist with HiFX in San Francisco.

The Bank of England also held rates steady at 5%, sending the dollar higher versus the British pound.

Commodities: Falling commodity prices, also helped lift the dollar.

Commodities, particularly oil futures, are often purchased to hedge against inflation. However worries about falling demand due to high energy prices have prompted many investors to direct some of that investment money back into the dollar.

Oil rose more than a dollar Thursday after rebels reportedly struck a pipeline in Turkey, but prices remained near $120 a barrel, more than $27 below their record high in July.

Economic pressure: The Dow industrials fell as jobless claims hit a disappointing 6-year high last week, according to the Labor Department, indicating that the labor market was worse than expected.

Many retailers also reported slower sales, suggesting that the effects of the government's economic stimulus program were winding down.

However a report from the National Association of Realtors showed that new home sales had risen by 5.3% in June, indicating that the floundering real estate market may be starting a transition.