The dollar gained the most against the euro in four days and
strengthened versus the yen as global stocks rallied and the index of
leading U.S. economic indicators unexpectedly rose in April.
The greenback had traded earlier near the lowest level in more than two
weeks against the common European currency on concern that a decline in
consumer confidence may prevent a rebound in U.S. economic growth.
``Any hint toward stabilizing in the U.S. could be seen as bearish for
the euro,'' said Benedikt Germanier, an analyst with UBS AG in
Stamford, Connecticut. ``Investors are buying the dollar against the
euro on dips.''
The dollar advanced after the Conference Board's gauge increased 0.1
percent for a second month, better than forecast, the New York-based
research group said today. The measure points to the direction of the
economy over the next three to six months.
``The European economy will continue to slow down while the U.S. is
bottoming out,'' said Alan Kabbani, a senior currency trader at
Wachovia Corp. in Charlotte, North Carolina. ``We are staying the range
$1.5250 to $1.5650 until we get a better understanding of where the
economy is going.''
The dollar may gain further on speculation minutes from the Fed's
meeting last month will show policy makers are concerned that rising
commodity prices will fan inflation. The Fed on May 21 will release
minutes of its April meeting, where the policy- setting Federal Open
Market Committee cut the benchmark interest rate by a quarter point to
2 percent.