Dollar rises on concerns about Chinese economy

AP News
Posted: Mar 20, 2012 3:51 PM

The dollar rose against the euro Tuesday because of concerns that China's economy is slowing.

A report showed that home prices in 45 Chinese cities fell in February. Worries about the world's second-largest economy increased after mining company BHP Billiton Ltd. said it expects weakening Chinese demand for iron ore, which is used to make steel.

Traders tend to buy what they consider safer currencies, such as the dollar, when they are worried about the global economy.

The euro fell to $1.3232 in late trading Tuesday from $1.3238 late Monday. The British pound fell to $1.5869 from $1.5899.

The dollar rose to 83.69 Japanese yen from 83.41 yen. It also rose against currencies of commodity-rich nations, such as Australia, New Zealand and Canada. Those countries might be hurt the most by a slowdown in China. Australia, for example, is China's biggest trading partner, said research director Kathleen Brooks.

The dollar rose to 99.15 Canadian cents from 98.67 Canadian cents.

Meanwhile, the dollar was practically unchanged at 0.9113 Swiss franc from 0.9114.