Euro tops $1.41 for 1st time since January

AP News
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Posted: Oct 14, 2010 3:57 AM
Euro tops $1.41 for 1st time since January

The euro rose above $1.41 for the first time since January on Thursday as the dollar continued to sag under expectations that the U.S. Federal Reserve may soon take new measures to support the American economy.

The dollar, which would lose appeal to investors if the Fed seeks to further depress U.S. market rates, also hit a new 15-year low against the Japanese yen.

The 16-nation euro rose as high as $1.4103 in morning European trading before slipping back to $1.4084, still well above the $1.3965 it bought in New York late Wednesday.

The dollar sank to 81.19 yen from 81.77 yen. The British pound rose to $1.6109 from $1.5970.

After the release this week of the minutes of the Fed's September meeting, many expect the central bank will announce a bond-buying program as soon as next month.

That could drive interest rates even lower, which could stimulate the economy but hurt the U.S. currency by making dollar-denominated investments less attractive to investors.

Also weighing on the currency Thursday was an announcement by Singapore's central bank that it will continue with a "modest and gradual" appreciation of the Singapore dollar, while the trading band and its slope will be increased slightly.