The dollar rose the most against the euro in more than two weeks Tuesday as Treasury Secretary Henry Paulson voiced support for the currency and the Federal Reserve Bank of Philadelphia president said interest rates should be raised.
The U.S. currency strengthened as Paulson said in a speech that he's ``confident'' that lawmakers will pass the bill to ``boost confidence'' in Fannie Mae and Freddie Mac, the largest sources of U.S. mortgage financing. He reiterated that a strong dollar is ``really very important.''
The dollar touched the record low earlier this month on concern Fannie and Freddie, which own or guarantee almost half of the $12 trillion in U.S. home loans outstanding, may fail to survive the housing slump.
Philadelphia Fed President Charles Plosser said, that the U.S. central bank should raise interest rates ``sooner rather than later.''