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.

Strengthens the dollar against the euro

NEW YORK--the dollar has increased the euro late Friday. He declined earlier in the day after reports higher than expected on European economic growth and an inflation report to United States which was consistent with expectations.

The dollar was also stronger against other currencies, the pound sterling, Swiss franc and Canadian dollar. It was lower against the Japanese yen.

Euro-zone economy has expanded at a quarterly rate of 0.8 per cent in the first three months of the year, more than double the growth of 0.3% posted in the previous quarter and economists to trim expectations.

The German economy, largest, Europe has increased by 1.5% in the quarter, faster than expected.

The "very strong number" will be beneficial for the euro, said Mark McCormick, currency at Brown Brothers Harriman strategist. He said the dollar rose Friday because that traders have been conduct their positions on the dollar.

The euro fell to $1.4110 late afternoon trading Friday from $1.4231 late Thursday. A little more than a week ago the euro was worth $1.49.

Despite the data better than expected in the euro area, is concerned about the debt crisis of the region continued. The European Union warned Friday that the debt of the Greece growing faster that had been forecast. The Greece and the Ireland received hefty rescues last year. Portugal is supposed to be the third for a rescue plan when EU Finance Ministers meet this month to approve a package of EUR 78 billion.

In the United States, the Ministry of labour said that the consumer price index increased by 0.4% in April, corresponding to the expectations.

In other trade Friday, the British pound fell to $1.6174 from $1.6286 late Thursday. The dollar rose to pink and Swiss francs 0.8851 Swiss franc 0.8923 to 96.82 Canadian cents 96 cents Canadian.

The dollar rose from 80.91 80.84 Yen Japanese yen.

The motto of the United States was higher against most other currencies. including those in Australia, the Norway, the Korea South and Latin America.