USD stronger versus euro

The US dollar gained on the euro on Tuesday in late morning trade in New York as investors decided that Monday’s 2.1 percent decline for the greenback against the shared currency on deficit concerns in light of the US government’s bailout plan was too big to hold.

Tuesday’s gains came as Federal Reserve Chairman Ben Bernanke and US Treasury Secretary Henry Paulson went into detail about the rescue plan for the Senate Banking Committee.

The dollar traded at $1.4726 to the euro while it took ¥105.67 to buy a dollar.

The Canadian dollar, however, strengthened in relation to its US counterpart as new data showed that core inflation in Canada was up to 1.7 percent in August.

The loonie traded at C$1.0357 to its US counterpart at late morning in New York.

The South African rand weakened versus the dollar after more resignations, including that of Finance Minister Trevor Manuel, followed the forced resignation of South African president Thabo Mbeki.

Mr. Manuel’s resignation, which was not expected, raised concerns about the path economic policy in South Africa will take in the future and was not seen as good for sentiment among foreign investors.

The rand most recently traded at R8.1635 to the greenback.

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