Dollar Rises Against Euro Ahead of Central Bank Rate Meetings
The dollar rose against the euro Tuesday as investors squared positions ahead of central bank meetings in the U.S. and Europe.
The 13-nation euro was , well off last month's all-time high of $1.3682.
The euro dropped after the German Economy Ministry reported industrial production in the country fell 0.1% in March, compared with a 0.4% gain the month before. Analysts had expected the figure would remain unchanged.
The British pound fell from $1.9931 late Monday, and the Japanese yen rose to .
The drops came as central banks in Europe, Britain and the United States are set to meet this week.
The European Central Bank is expected to keep its main interest rate unchanged at 3.75% when it meets on Thursday. Many analysts also expect the U.S. Federal Reserve on Wednesday to keep its rates steady at 5.25% -- although weak unemployment data last week and recent fears of economic slowdown have fueled speculation that it might cut rates.
The Bank of England is expected to increase its key rate from 5.25% to 5.5% when it meets Thursday in Dublin, Ireland.
Lower interest rates can undermine a currency by reducing returns on some investments denominated in it, while higher rates can bolster a currency by making those investments more attractive.
In other trading, the dollar rose against the Swiss franc and Canadian dollar .