Dollar Advances Most in Almost Two Weeks


The dollar rose the most in almost two weeks against the euro after UBS AG said it will raise about $15 billion, signaling the world's biggest financial institutions can ride out the freeze in credit markets.

The U.S. currency also appreciated against the yen after a Bank of Japan report showed a slump in business confidence in March. The euro also weakened after Deutsche Bank AG said it will take a record $3.9 billion writedown and described market conditions as ``significantly more challenging.''

The dollar climbed to $1.5641 per euro at 6:36 a.m. in New York, from $1.5788 late yesterday. It advanced to 100.57 yen. The euro was little changed against the yen at 157.27.

The U.S. currency completed its worst quarter in four years against the euro yesterday. The Federal Reserve has cut its target interest rate by 2 percentage points this year to 2.25 percent to revive economic growth. The European Central Bank has held its key rate at a six-year high of 4 percent after inflation accelerated to the fastest pace in almost 16 years.


TradingEconomics.com, Bloomberg
4/1/2008 6:51:22 AM