Dollar mixed against major currencies

AP News
Posted: May 03, 2011 3:49 PM
Dollar mixed against major currencies

The dollar was mixed Tuesday as investors continued to weigh the impact of Osama bin Laden's death on the world economy.

The U.S. dollar rose against the euro and pound, but fell against the yen and hit a record low against the Swiss franc.

"There is some fear of retaliation attacks after the death of Osama Bin Laden," said Camilla Sutton, currency strategist at Scotia Capital in Toronto. "There is some risk aversion going on."

Investors consider the dollar, yen and Swiss franc to be safe assets and they tend to rise during times of global turmoil.

The dollar has fallen over the past few weeks as investors expected the Federal Reserve would keep interest rates low. Central banks overseas are raising interest rates. Higher rates tend to make currencies more attractive to investors seeking higher yields.

The euro fell to $1.4821 late Tuesday from $1.4846 Monday. The British pound fell to $1.6467 from $1.6683.

The U.S. currency fell to 0.8618 Swiss franc from 0.8642 Swiss franc Monday. Earlier, the dollar fell to a new record low against the Swiss currency, touching 0.8593 Swiss franc.

On Tuesday, the U.S. Commerce Department said that factory orders increased for the fifth consecutive month as businesses increased their demand for industrial machinery, computers and autos. Orders rose 3 percent in March after a 0.7 percent increase in February.

In other trading Tuesday, the dollar fell to 80.91 Japanese yen from 81.30 Japanese yen Monday. The dollar rose to 95.39 Canadian cents from 94.97 Canadian cents.