NEW YORK - investor worries about the economic situation in Europe, particularly the Greece and the Spain, has propelled the higher the dollar Friday.
The euro slipped to $1.4201 in late trading in New York Friday of $1.4311 Thursday.
Credit ratings agency that Fitch cut ratings of long-term credit to Greece more in undesirable situation, saying that indebted countries faces challenges change its economy and the Government to reduce the debt.
Investors remain worried that the Greece will have to stretch its debt or pay less than what they are owed creditors. Europe, particularly those of the Greece banks hold lots of Greek bonds, and a restructuring can hurt them.
During this time, Spain organizes regional elections this weekend. Investors are afraid that new politicians should take up its duties will say that the country is even more deeply in debt that the Government had expected, said analyst for Brown Brothers Harriman Marc Chandler. This raises the possibility that Spain should attempt a rescue, following the path of the Greece, the Ireland and Portugal.
The euro has increased a steep 10 percent this year, reaching its highest point since December 2009 almost $1.49 in late April because investors expect the European Central Bank to keep raising interest rates. The Federal Reserve would keep rates near zero for a long time, perhaps until the end of next year. Higher rates can generate great returns on an investment, so that they tend to support the currency.
But a renewed focus on the problems in Europe this month has strengthened the dollar, although economists believe economic growth is perhaps not as strong as hoped to the United States this summer.
In other trade Friday, the pound sterling fimbriated up to $1.6276 to $1.6214, then only the dollar edged lower 81.57 Japanese yen of yen 81.63. The motto of the United States is passed to 97.23 cents Canadian Canadian cents 96.93, but went from Swiss franc 0.8815 to Swiss franc 0.8771.
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