US dollar, pound gain on euro

The US dollar made gains versus the euro, the yen, and the Swiss franc on Tuesday after two banks said they would raise nearly $20 billion between them in new capital and on a report showing less of a contraction in US manufacturing than expected.

The greenback traded at $1.5605 to the euro, while it took SFr1.0105 or ¥101.6350 to buy a dollar at nearly 11:30 a.m. in New York.

The pound gained on the euro on higher factory prices in March and on speculation that larger banks will survive the credit crisis.

The UK currency traded at 78.96p to the euro and at 50.60p to the US dollar at late morning in New York.

The yen was weaker on a Tankan survey that showed manufacturer confidence there to be in decline, with the Japanese currency trading at ¥200.8621 to the pound and at ¥158.6064 to the euro.

The Australian dollar declined in relation to the US dollar after the Reserve Bank of Australia held interest rates at 7.25 percent, trading at A$1.1039 to the greenback at late morning in New York.

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