The dollar
rose to a four-week high against the yen after Treasury Secretary Henry
Paulson voiced support for the currency and the Federal Reserve Bank of
Philadelphia president said interest rates should be raised.
The greenback also climbed to two-week highs versus the euro and the
Swiss franc as Paulson said he expects Congress to approve a rescue
plan for Fannie Mae and Freddie Mac, the two biggest U.S.
mortgage-finance companies. The yen fell to a record low against the
euro as stocks climbed, encouraging investors to add to holdings of
higher-yielding assets funded in the Japanese currency.
``The view that the worst of the uncertainty and bad news may be behind
us has reinvigorated risk appetite,'' said Derek Halpenny, head of
currency research in London at Bank of Tokyo- Mitsubishi. ``We're on
the last leg of the dollar bear market.''