Dollar Fades As Does Fear; Euro Climbs Above $1.27
The dollar fell as a strong start to the U.S. earnings season and a smooth treasury-bill sale in Greece eased fears about economic recovery and the euro zone's financial system. The euro reclaimed the $1.27 level.</br></br>"Over the last couple of days or a week, markets seem to feel a little bit more comfortable with life in general," said Carl Forcheski, director of foreign exchange at Societe Generale in New York.</br></br>In a sign that investors remain cautious, the dollar was unable to gain on the yen. The yen's resilience reflects skepticism about the stock market's rally, said Phillip Streible, senior market strategist at futures broker Lind-Waldock in Chicago.</br></br>Late Tuesday in New York, the euro was at $1.2715, up from $1.2593 late Monday. The common currency was at 112.46 Japanese yen, up from 111.60, while the dollar was little changed at 88.45 yen from 88.62. The pound rose to $1.5163 from $1.5031. The dollar was at 1.0549 Swiss francs, down from 1.0604 francs.</br></br>The sovereign-debt crisis in the euro zone was in sharp focus during European trading, with the euro initially under pressure as credit rater Moody's Investors Service dropped Portugal's rating two notches to A1. The downgrade prompted worries about Greece's debt auction, stoking concerns about the euro zone's peripheral members.