Dollar turns lower against euro

AP News
Posted: Sep 26, 2011 5:31 PM
Dollar turns lower against euro

The dollar turned lower against the euro Monday as investors evaluated published reports that European officials are working on a plan to help resolve the region's debt crisis.

The plan, reported by British newspapers, is said to include a possible Greek default, a recapitalization of banks and an increase to the bailout fund. The reports said the plan would try to stop the crisis from spreading to other countries.

Global stock markets rose Monday on the hope that officials may do more to contain the debt crisis, though some eurozone officials tried to reduce expectations, saying a quick fix is not likely.

In afternoon trading Monday, the euro rose to $1.3472 from $1.3467 late Friday.

In the U.S., the Commerce Department said Monday that new-home sales dropped 2.3 percent in August, the fourth straight monthly decline. The report suggests the U.S. housing market is far from a recovery.

The dollar was also lower against most other currencies. The British pound rose to $1.5530 from $1.5431 late Friday. The dollar fell to 76.49 Japanese yen from 76.72 Japanese yen and to 0.9056 Swiss franc from 0.9070 Swiss franc.