Euro nearly unchanged against dollar at $1.3024

FRANKFURT — The euro was nearly flat against the dollar Thursday despite news that Germany’s economy, Europe’s largest, was expected to shrink more than 5 percent this year.

The 16-nation euro bought $1.3024 in European morning trading, slightly up from the $1.3017 late Wednesday in New York.

The British pound bought $1.4575 compared with $1.4506, while the dollar bought 98.07 Japanese yen from 98.13 late Wednesday in New York.

German Economy Minister Karl-Theodor zu Guttenberg said Wednesday that the government expects the economy to shrink by more than 5 percent in 2009 — more than double the 2.25 percent contraction predicted in January.

Meanwhile, the International Monetary Fund predicted a 5.6 percent contraction for Germany in 2009. At the same time, the IMF projected a 1.3 percent drop in the global economy.