20000329

Dollar up against European currencies

NEW YORK: The dollar rose against European currencies on Monday, gaining back ground lost last week following an increase in Swiss interest rates.

The dollar rose against the euro, the British pound and the Swiss franc as expectations for additional interest rate hikes in Europe fizzled.

The unusually large Swiss rate hike of three-quarters of a percentage point last week had raised hopes that other European central banks would follow suit, but comments from officials at the Bank of England and the European Central Bank downplayed the possibility of more increases.

In late New York trading, the euro was quoted at 96.62 cents, down from 97.53 late Friday, and the British pound fell to dollars 1.5878 from dollars 1.5926. The dollar also rose against the Swiss franc, trading at 1.6441 Swiss francs, up from 1.6277 late Friday.

In other trading, the dollar was quoted at 106.87 Japanese yen, down from 107.05, and 1.4585 Canadian dollars, down from 1.4636.

Currencies of the 11 countries participating in the euro are no longer traded separately and are tied to the euro by a fixed rate.

Based on Monday's euro rate, the dollar was worth: 2.0242 German marks, up from 2.0053; 6.7890 French francs, up from 6.7254; and 2,004.01 Italian lire, up from 1,985.21.