Euro Advances on Dollar
Author: Neil Shah</br></br>NEW YORK--The euro drifted higher against the dollar after sliding sharply in European trading, as the currency surmounted worries about the European Central Bank's inflation-fighting acumen and the region's debt woes.</br></br>German central bank chief Axel Weber's decision to no longer seek the presidency of the European Central Bank sparked fears that the ECB's next leader may lack a strong stance against rising price pressures. Central banks raise key interest rates to cool off inflation, and higher rates can push a currency's value higher.</br></br>But traders shrugged off their fears, along with comments by Federal Reserve Chairman Ben Bernanke acknowledging the U.S. central bank might end its $600 billion bond-buying program before its expected end in June. Mr. Bernanke's comments briefly boosted the dollar against the euro.</br></br>After dipping to $1.3610, the euro climbed to a high of $1.3745 before easing off. Interest rates on U.S. Treasury bonds dipped after a strong sale of U.S. government debt, pushing the euro higher against the dollar. Investors, meanwhile, are still hoping that European leaders will map out a strategy for financing struggling euro-zone nations.