A federal appeals court in San Francisco upheld the use of the words "under God" in the Pledge of Allegiance and "In God We Trust" on U.S. currency, rejecting arguments on Thursday that the phrases violate the principle of separation of church and state.

The 9th U.S. Circuit Court of Appeals panel rejected two legal challenges by Sacramento atheist Michael Newdow, who claimed the references to God disrespect his religious beliefs.