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Dollar rises against the euro on Egypt's unrest

Dollar rises against the euro on Egypt's unrest

The dollar gained against the euro and the British pound on Friday as protests in Egypt continued, pushing investors to move to currencies they perceive as being safer bets.
The euro, used by 17 European countries, dropped to $1.3615 during afternoon trading Friday from $1.3729 late Thursday. The euro has risen over the past three weeks as investors have increasingly believed that European officials will launch a stronger attack on Europe's debt problems. The British pound fell to $1.5869 from $1.5935 late Thursday.
"All in all, risk aversion is coming into play," said Camilla Sutton, chief currency strategist at Scotia Capital. Both the Japanese yen and the Swiss franc were higher against the U.S. dollar, which is typical when investors are looking to avoid investing in riskier currencies, Sutton said.
The dollar fell to 82.17 Japanese yen from 82.82 yen, and the dollar fell to 0.9423 Swiss franc from 0.9458 Swiss franc. The dollar index, which compares the dollar against six currencies, was up 0.54 percent late Friday.
Investors are watching to see how the street protests in Egypt will end, and if it will mean a regime change. A curfew imposed by President Hosni Mubarak did little to stop protests. Also on Friday, Fitch Rating revised down its outlook for Egypt, dropping it to "negative," and Egypt's national airline, EgyptAir, said it has suspended flights from Cairo overnight.
Meanwhile, the U.S. Commerce Department said Friday that the U.S. economy grew at a 3.2 percent annual pace from October to December, up from 2.6 percent from July through September. Economic growth got a boost from heavier spending by consumers and an increase in exports.
In other currency trading, the dollar rose to 1.0060 Canadian dollar from 99.40 Canadian cents Thursday. The dollar also rose against most Asian and Latin American currencies.


Updated : 2021-05-07 19:41 GMT+08:00