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Dollar climbs on rates, euro anxieties

The U.S. dollar rose on Wednesday, getting lift from fatter Treasury yields and investor anxieties about likely market-moving policy shifts by central bankers looking to spur Europe's economy.

After trading very near $1.40 within the past month, the euro has been talked down by European Central Bank officials widely expected to cut interest rates Thursday or institute other monetary easings likely to discourage buying of the currency shared by 18 countries.

On Wednesday, the euro last traded off 0.20 percent against the dollar at 1.3603 after earlier dipping under $1.36. "There are a lot of questions about how big the rate cut will be," said Lane Newman, director of foreign exchange at ING Capital Markets in New York.

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"Rates here are expected to be higher before lower. Obviously, the rates in the eurozone are going to be lower before higher. That's benefiting the dollar across the currency universe."

The dollar last stood up 0.25 percent at 102.73 yen after trading as high as 102.79 yen, near a level last touched on May 5. The U.S. dollar index, composed of six major currency pairs, was last up 0.14 percent at 80.668 after peaking at 80.677.

—By Reuters

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