FOREX-Euro drops on growth fears, rate cut expectations

(Adds details, comments, updates prices)

NEW YORK, Feb 7 (Reuters) - The euro dropped broadly on Thursday after European Central Bank President Jean-Claude Trichet said euro zone growth risks are to the downside, paving the way for lower interest rates this year.

Pressure on the euro started earlier in the session as the ECB left benchmark borrowing costs unchanged at 4 percent. Trichet made his comments in a post-meeting press conference.

The euro has come under pressure in the past couple of sessions amid growing signs the economy in the 15-member bloc is faltering. In another rate-setting meeting on Thursday, the Bank of England cut borrowing costs, citing a weak economic outlook.

"Mr. Trichet co-operated today and the market got what it wanted," said Joe Trevisani, chief market analyst at FX Solutions in Saddle River, New Jersey. "He said there are downside risks to growth and 4 percent rates allow for price stability. The market is saying the next move will be a cut."

In early afternoon New York trading, the euro was down 1 percent at $1.4481 <EUR=> after dropping as low as $1.4467. The euro has lost 2.2 percent this week, heading for its biggest weekly fall since August 2005.

The dollar also advanced against a basket of currencies .DXY, gaining 1 percent to 76.897, its highest level in about two weeks.

"We're at a bit of a pivot point in the euro here, and if we can get and stay below the $1.4520 area I think that could open the flood gates a little more," said Steven Butler, director of FX trading at Scotia Capital in Toronto.

Versus the Japanese currency, the euro fell 0.2 percent to 155.30 yen <EURJPY=>.