Dollar Rises versus Euro as Traders Raise Bets Fed Rate to Rise

akarta, Financeroll.com – The dollar rose for a second day versus the euro as stocks in Europe declined and investors raised bets the Federal Reserve will increase interest rates by the end of the year as the economy recovers.

The U.S. currency gained most versus the New Zealand dollar and the Norwegian krone as the MSCI World Index dropped for a second day and Fed funds futures showed a 40 percent chance the central bank will lift its target rate to 0.5 percent by September. The yen advanced as reports showed bankruptcies declined and merchant confidence in Japan improved. The pound dropped for a fourth day against the dollar as Prime Minister Gordon Brown faced an attempt to oust him.

The dollar rose to $1.3874 per euro as of 9:50 a.m. in London from $1.3968 in New York on at the end of last week. It traded at 98.28 yen, versus 98.64, while Japan’s currency strengthened 1.1 percent to 136.36 per euro, from 137.81. The New Zealand dollar fell 1.1 percent to 61.95 U.S. cents. The Norwegian krone slipped 1 percent to 6.4897 per dollar.
Written by Denny Yahya