Dollar strengthens on European credit concerns

The US dollar had its biggest one-day gain versus the euro in two weeks on Thursday on concerns that the US credit crisis is spreading to Europe and that interest rates there could soon begin to fall as well as on analysts’ sentiment that the dollar’s declines this year will turn around.

The US currency was trading at $1.4766 to the euro at around noon in New York and by almost two p.m. it was at $1.4755 to the shared currency, while it took ¥109.7150 to buy a dollar.

In addition, the US dollar gained to $2.0640 to the pound in mid-day trade while it traded at $2.0631 to the pound by around two p.m. and sterling weakened on separate reports showing that mortgage approvals were down in October and that housing prices were at their lowest in twelve years in November.

In afternoon trade in New York it took €1.3982 to buy a pound, while the yen traded at ¥226.3478 to the pound.

Story link: Dollar strengthens on European credit concerns