Euro gains against dollar ahead of EU summit

AP News
Posted: Dec 06, 2011 4:10 PM
Euro gains against dollar ahead of EU summit

The euro turned higher against the dollar late Tuesday as traders looked past downgrade warnings from Standard & Poor's and turned their focus to a summit of European leaders later this week.

The euro rose to $1.3414 in late trading Tuesday from $1.3401 late Monday.

The euro was trading lower against the dollar for most of the day after ratings agency Standard & Poor's warned it could downgrade the debt of Europe's bailout fund as well as most of the countries that use the euro.

Cutting the bailout fund's credit rating could complicate the region's fight against Europe's debt crisis. Losing the pristine AAA rating could make it harder for the fund to raise money cheaply, increasing the cost of European bailouts.

The warnings are putting pressure on European leaders to come up with a solution to the region's debt crisis when they meet this week. Traders are hoping that they can agree on a plan.

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In other trading Tuesday, the British pound fell to $1.5605 from $1.5644. The dollar fell to 77.70 Japanese yen from 77.77 Japanese yen and to 1.0092 Canadian dollar from 1.0171 Canadian dollar.

The dollar rose to 0.9257 Swiss franc from 0.9205 Swiss franc.