FRANKFURT — The euro was nearly unchanged against the dollar Wednesday after positive economic reports out of the U.S. and as investors looked toward the European Central Bank's policy meeting on Thursday.

Meanwhile, Asian markets steadied as the Dubai debt crisis looked contained to the Middle East.

The 16-nation euro was at $1.5094 in European morning trade, about the same as late Tuesday in New York.

The British pound was lower, at $1.6620 from $1.6641, while the dollar was higher against the Japanese yen, buying 87.34 yen compared with 86.65 yen late Tuesday in New York.

Reports on U.S. manufacturing and housing Tuesday pointed to a gradual recovery in the economy, while auto sales in November showed more signs of stability.

Stock markets have rebounded this week after worries subsided that Dubai's debt problems would cause more turmoil in the financial system.

Investors are also looking forward to the ECB's meeting Thursday, especially for details of how the bank will wind down its extraordinary measures, which have provided markets with extra liquidity over the last year.

The bank is expected to keep its main interest rate at 1 percent, a record low, but still higher than the U.S. Federal Reserve's or the Bank of England's rates.

Investors tend to sell the dollar in favor of riskier, higher-yielding currencies and stocks when strong economic reports or other developments imply the economy is improving. Interest rates affect currency demand and values as investors move assets where they earn the best returns.

"The euro versus the dollar rally above $1.5060 should pave the way for a quick break through this year's high at $1.5140 and above," UniCredit said in a research note. "A test of $1.52 to $1.53 before Christmas is back on the radar screen."