Dollar strengthens as investors eye Greece, Spain

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.

Applications for the Spain of unemployment down (AP)

MADRID - the number of people in Spain of filing applications for unemployment benefits fell in April by about 64 000 in the first decline this year, the Government said Wednesday that he relates a bit of good news for a country struggling to recover from the recession.

Labour and the Ministry of Immigration, said the fall left the total number of persons receiving benefits to shy just of 4.27 million. The fall is the first since December and good news to Government attempts to repel the intermittent fears that Spain will be the next victim of rescue of Europe will follow the Greece, the Ireland and Portugal.

The Spain real unemployment rate is published separately each quarter. At the end of March, it rose to a high of 21.3%, with more than 4.9 million people work in the euro area. The number of claims is different because of many people unemployment benefits were exhausted.

Prime Minister José Luis Rodriguez Zapatero welcomed Wednesday decline in unemployment claims and said that he suggested Spain will be in fact achieve a net job creation in the second half of 2011, that his Government has stated on several occasions.

The decline in claims without a job in April has been attributed in part to hiring in the resorts of vacation for the holidays of Easter week in Spain, and the Government is for hiring summer vacation in the country of tourism paradise to lower the unemployment rate.

It is still, forecast of the GDP growth of only 1.3% for the year. Many analysts and even the IMF call this too optimistic.

The Ministry of labour said falling April in covered unemployment claims all sectors of the economy, and was the largest for the month of April since 2006. But since April 2010, claims increased by 3 percent, or 127 000 people.

Government of Zapatero expressed the number of unemployed will not affect the psychological barrier of five millions of confidence.

General elections must be held in March 2012, and Socialist Zapatero are behind the conservatives in the polls. Zapatero said that he will not seek a third term in Office.