Economic Optimism Lifts Euro
NEW YORK -- The euro eked out an advance against the dollar as investors turned modestly optimistic about the pace of the global economic recovery, despite lingering concerns over the euro-zone debt crisis.</br></br>Unconfirmed reports of strong Chinese export figures boosted currencies closely tied to global economic growth, while Federal Reserve Chairman Ben Bernanke's cautiously optimistic tone on the U.S. economy also supported the rally.</br></br>But a late-afternoon slip in U.S. stocks threw cold water on the run-up in riskier currencies, and investors likely pared their euro holdings ahead of Thursday's meeting of the European Central Bank, said Ron Leven, currency strategist at Morgan Stanley in New York. The central bank isn't expected to increase its target rates. Still, investors will listen closely for details on how the bank is dealing with issues related to euro-zone sovereign debt.</br></br>As investors took risk off the table in late afternoon, the dollar hit an intraday low against the yen. The Japanese currency tends to strengthen when investors unwind bets on higher-yielding currencies.</br></br>By late afternoon in New York, the euro was at $1.1987, compared with $1.1947 late Tuesday in New York. The dollar was at 91.17 yen from 91.39 yen. The euro was at 109.28 yen from 109.18 yen. The U.K. pound strengthened to $1.4533 from $1.4426. The dollar weakened to 1.1478 Swiss francs, from 1.1527 francs.