Dollar rises after drop in consumer confidence

AP News
Posted: Jan 31, 2012 3:51 PM
Dollar rises after drop in consumer confidence

The dollar rose against the euro Tuesday after a drop in American consumer confidence pushed traders to seek the safety of the U.S. currency. The yen soared to a three-month high against the dollar after industrial activity in Japan rose last month.

In the U.S., the Conference Board said its consumer confidence index came at 61.1 for January, down from 64.8 in December. Economists had expected a reading of 68.

Traders consider the U.S. dollar a haven currency, and it tends to rise during times of economic uncertainty _ even when that uncertainty is in the U.S. economy. The euro fell to $1.3084 in late trading Tuesday from $1.3124 late Monday.

Japan said industrial production rose 4 percent in December. The dollar fell to 76.20 Japanese yen, its lowest point since Oct. 31, 2011. The dollar was worth 76.29 yen Tuesday.

The dollar was mixed against other currencies. The British pound rose to $1.5760 from $1.5697.

The dollar rose to 0.9205 Swiss franc from 0.9185 franc. The dollar was unchanged at 1.0025 Canadian dollar.

The U.S. currency fell against the Australian and New Zealand dollar, the South Korean won and the Hong Kong dollar, but rose against the Brazilian real and Norwegian krone.