NEW YORK — The dollar mostly bounced higher against the euro Monday, building on Friday’s gains as debt woes in Ireland reawakened concerns about the euro area’s economic prospects.
In late trading in New York, the euro dropped to $1.3923 from $1.4045 late Friday. The British pound fell to $1.6132 from $1.6189. But the dollar slipped to 81.21 Japanese yen from 81.32 yen.
The dollar rose 0.6 percent against an index of six major currencies. That’s a relatively small move higher after the measure had hit its lowest level of the year on Thursday in the aftermath of the Federal Reserve’s decision to start a $600 billion bond-buying program.
The Fed’s plan could get consumers and businesses borrowing and spending more by driving down interest rates. Lower rates also make the dollar less attractive as an investment, however. The U.S. currency has been dropping for months as investors anticipated the Fed’s move.
Coming just before a meeting of leaders of the Group of 20 nations Thursday and Friday, the Fed’s announcement has added to tensions related to big trade surpluses and deficits and surging currencies in developing economies.
RELATED ARTICLE:
Will the Dollar Rebound Before Being Dissolved Into Global Currency?
Be the first to comment on "Dollar Gains as Euro Concerns Resurface"