Euro recovers against dollar after the head of the IMF stop

NEW YORK - the euro recovered early decline Monday triggered by the fear that the arrest of the Monetary Fund week International Chief Dominique Strauss-Kahn could hinder the role of the Organization to help Europe dig of the debt crisis.

The euro passed to $1.4192 Monday afternoon in New York of $1.4168 Friday. The common currency fell as low as $1.4046 earlier because of worries about the lack of Strauss-Kahn of negotiations key on European aid to the most indebted countries in the region.

"It is unclear if the arrest of (Strauss-Kahn), who was supposed to be part of the negotiations today, in Brussels will affect talks on European packages aid..."."But it will almost certainly not conducive to negotiations," Brown Brothers Harriman analysts wrote in a research note.

Monday, European Union signed off the coast on a $ 110 billion aid program to the Portugal. Some concerns subdivided after the IMF issued a statement indicating that the organization is still fully functional. But discussions continued on a second round of aid for the Greece which can help to avoid a debt restructuring. Such a failure could affect European banks which hold lots of Greek bonds. Talks continue Tuesday.

Still, others believed that immediate course of action the IMF would not be affected by the absence of Strauss-Kahn.

UBS analyst Gareth Berry "fate of Strauss-Kahn is unlikely to change the policy of the IMF within the euro area," said in a note to clients. "The Greece and the Ireland have made agreements with the IMF as an institution rather than with his head".

The French economist was arrested in New York on Saturday for allegedly sexually assaulted a woman Chamber in a hotel near Times Square. He was ordered to prison without bail Monday, withdraw current discussions on how to contain Europe long debt crisis. The IMF is a lender for the Greece, the Ireland and Portugal.

Data of Europe showing higher prices has also suggested that the European Central Bank remains on track to increase interest rates this summer, said Camilla Sutton, strategist, currency Chief at Scotia capital. The Federal Reserve keeps rates American key near zero. Central bankers to raise rates to combat inflation and higher rates tend to support the demand for a currency.

In other exchanges Monday, the dollar was mixed against other currencies in the world. The British Pound rose to $1.6211 from $1.6174 Friday. The dollar remained unchanged at 80.84 yen, but from Swiss franc 0.8923 0.8832 Swiss franc. During this time, the American currency is passed to 97.32 Canadian cents 96.82 cents Canadian.