Dollar Rises Versus Euro

The dollar rose the most in two days against the euro since December as traders increased bets the Federal Reserve will stop cutting interest rates while the European economy showed signs of a slowdown.

The euro fell to a three-week low against the dollar after a European Central Bank report showed money supply growth slowed more than economists forecast last month. The Australian dollar dropped against most of the major currencies as lower commodity prices dimmed the outlook for growth.

The dollar rose 0.6 percent to $1.5594 per euro at 8:41 a.m. in New York, from $1.5682 yesterday. The U.S. currency has increased 1.8 percent over the past two days after hitting a record low of $1.6019 per euro on April 22. The dollar advanced 0.2 percent to 104.51 yen, from 104.26 yen. The euro dropped 0.3 percent to 163.01 yen, from 163.45 yesterday.

The U.S. currency has increased 1.4 percent against the euro since April 18, the biggest weekly gain since March. The dollar is 0.8 percent higher versus the yen, for its second week of gains. The euro has dropped 0.6 against the yen.

Dollar Rises Versus Euro, Bloomberg
4/25/2008 6:57:57 AM