Dollar Rises Against Euro

The dollar rose against the euro on Wednesday as investors grow more optimistic about the US economic recovery and stayed wary about the eurozone debt crisis, analysts said.

In late morning deals, the European single currency fell to 1.3256 dollars from 1.3303 late in New York on Tuesday. The dollar edged up to 82.06 yen from 82.00 yen on Tuesday.

The market gained confidence in the US economy after the Commerce Department on Tuesday reported that factory orders for November rose 0.7 percent, beating forecasts of a 0.3 percent fall in orders.

"A series of upbeat US economic indicators released since late last year have provided a good reason to buy the dollar," said Yuichiro Harada, dealer at Mizuho Corporate Bank.

"The market is closely watching the (US) employment report due out later this week," Harada told AFP.

The shared eurozone currency was also under pressure on risk-aversion following overnight falls in prices of commodities such as crude oil and gold, dealers said.

"The euro was beaten down as the market became less tolerant to risks," Harada said.

"Since the new year started, there has scarcely been any more negative news concerning the eurozone debt crisis, but concerns persist in the market."

The Swiss franc eased further against leading currencies after reaching new highs in the final days of 2010 thanks to renewed market tensions over sovereign debt in the eurozone.

Swiss analysts said the refuge currency's behavior was largely contingent on the state of public finances in the European Union, Switzerland's biggest trading partner. Switzerland is not a member of the EU.

The relentless rise of the traditional Swiss safe haven currency into new territory under the impulse of investors concerned about the broad European and US recovery has caused alarm among Swiss exporters in recent weeks.

Analysts at Pictet bank cautioned that investors who had taken a long-term bet on the franc "will not pull out before they have strong confirmation of the improvement in the finances of European Union member states."

The Swedish krona rose to a six-year high point against the euro. Swedenis a member of the European Union, but not of the eurozone.

In London on Wednesday, the euro changed hands at 1.3256 dollars against 1.3303 dollars late in New York on Tuesday, at 108.80 yen (109.11), 0.8509 pounds (0.8533) and 1.2603 Swiss francs (1.2617).

The dollar stood at 82.06 yen (82.00) and 0.9505 Swiss francs (0.9482).

The pound was at 1.5579 dollars (1.5586).

On the London Bullion Market, the price of gold dropped to 1,383.75 dollars an ounce from 1,388.50 dollars late on Tuesday.