Dollar mixed in light year-end trading

AP News
Posted: Dec 30, 2009 4:11 PM

The dollar was mixed in light year-end trading Wednesday after a report on Midwest manufacturing showed that production and new orders increased and employment improved.

The 16-nation euro slipped to $1.4334 in late New York trading from $1.4351 late Tuesday. Meanwhile, the British pound inched up to $1.6069 from $1.5903 and the dollar edged higher to 92.46 Japanese yen from 91.96 yen.

Some investors have been buying the dollar in recent weeks on the belief that the economy is improving and the Federal Reserve will raise interest rates in the next year. That buying interest comes after a monthslong slide in the greenback.

Rock-bottom interest rates have encouraged investors this year to move out of cash and into riskier assets such as stocks and commodities that have the potential to earn bigger returns.

The Chicago Purchasing Managers Index, a key economic indicator, signaled growth in the Midwest manufacturing industry for a third straight month.

In other late trading, the dollar rose to 1.0554 Canadian dollars from 1.0434 late Tuesday, and was unchanged at 1.0370 Swiss francs.