Dollar falls against euro in thin trading

AP News
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Posted: Dec 27, 2011 3:39 PM
Dollar falls against euro in thin trading

The dollar fell slightly against the euro Tuesday during light post-Christmas trading. Better than expected U.S. consumer confidence data helped the euro, pound, yen and franc keep their modest gains against the dollar.

Currency trading is usually slow the week between Christmas and New Year's Day since many traders take the week off. The U.K. stock market was closed Tuesday.

The euro edged up to $1.3069 in late trading Tuesday from $1.3064 late Monday. The euro has been weak because of worries about the continent's government debt crisis. It has edged up against the dollar but it is still trading just above an 11-month low of $1.2943 reached on Dec. 14.

The Conference Board, a private research group, said Tuesday that its Consumer Confidence Index rose almost 10 points to 64.5 in December, up from 55.2 in November. Analysts had expected 59.

Traders tend to sell currencies that are considered safer bets, such as the dollar, and buy riskier ones, like the euro, when they are less nervous about the state of the global economy.

The U.S. currency was mostly lower against other currencies Tuesday. The British pound rose to $1.5670 from $1.5630 late Monday. The dollar fell to 77.85 Japanese yen from 77.96 Japanese yen, to 0.9340 Swiss franc from 0.9356 Swiss franc and to 1.0183 Canadian dollar from 1.0204 Canadian dollar.