U.S. News

Dollar Edges Up Against Euro

Associated Press

After a week that saw the U.S. dollar sink to an all-time low, the dollar inched up against the euro, but traded lower against other major currencies.

The 13-nation euro bought $1.3784 in early Monday afternoon trading in Europe, down slightly from $1.3789 in New York late Friday. The euro reached a record of $1.3813 on July 13.

The British pound continued to trade around 26-year highs against the dollar Monday, buying $2.0371, up from $2.0326.

Meanwhile, the dollar slipped to 121.82 Japanese yen from 122.06 yen. Japanese financial markets were closed Monday for Marine Day, a national holiday and will reopen on Tuesday.

Amid little U.S. economic data to trade on Monday, investors are looking ahead to a host of economic reports and events later in the week. The Labor Department reports on June's producer price index on Tuesday and June's consumer price index on Wednesday, both key gauges of inflation that the Federal Reserve monitors to determine any change in interest rates.

Also on Wednesday, the Commerce Department releases its data on housing starts for June, and Fed Chairman Ben Bernanke testifies before the House Financial Services Committee.

The New York-based Conference Board follows up with its monthly Leading Economic Indicators Index on Thursday.

Concerns about the strength of the U.S. economy, fueled largely by woes in the subprime housing sector, have largely boosted the euro and pound against the dollar.

The Fed has left its benchmark rate unchanged at 5.25 percent for a year, after two years of steady increases.

That contrasts with the course of the European Central Bank, which has raised rates steadily and is expected to do so again, to 4.25 percent, in September. The Bank of England last week increased its benchmark rate to 5.75 percent, a six-year high.

Higher interest rates, a weapon against inflation, can bolster a currency by giving better returns on fixed-income investments.

In other trading, the dollar bought 1.2021 Swiss francs , down from 1.2022 late Friday in New York, and 1.0429 Canadian dollars , down from 1.0476.