Dollar Gains; Investors Bet Recent Declines Too Far


The dollar rose to one-week highs versus the euro, the yen and the Swiss franc on Wednesday, with investors betting the U.S. currency's recent slump to multi-year lows had gone too far, though thin volumes accentuated market moves.

The dollar surrendered some of the session's gains after a report showed new orders for long-lasting U.S.-made manufactured goods dropped for a third month in a row during October with companies appearing wary about making new investments, according to a Commerce Department report.

In early New York trade, the dollar traded 0.9 percent higher at 109.76 yen, though it had climbed as high as 110.09, a one-week high. The euro fell around 0.4 percent to $1.4764, after earlier trading as low as $1.4710, a one-week low, according to Reuters data.

The dollar rose 1.1 percent versus the Swiss franc to 1.1163, earlier hitting a one-week high of 1.1195.

The dollar also surrendered some gains against the euro after Federal Reserve Vice Chairman Donald Kohn said on Wednesday he factored some tightening of credit from the financial turmoil into his policy decisions, but recent turbulence may restrict credit more than previously thought.


Reuters
11/28/2007 6:40:26 AM