Dollar rises as ECB hopes fade

AP News
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Posted: Aug 09, 2012 3:39 PM
Dollar rises as ECB hopes fade

NEW YORK (AP) — The dollar rose against most other currencies Thursday as traders wait to hear what the European Central Bank will do to help the region's economy.

Traders also bought the dollar on positive U.S. jobs data.

A member of the central bank's governing council said Thursday that the bank may soon buy bonds to lower borrowing costs for struggling countries. That plan would help countries like Italy and Spain, whose high borrowing rates make it hard for them to manage their debts.

Despite the comments, traders are disappointed that no concrete plans have been made. Mario Draghi, president of the ECB, mentioned a plan to buy bonds last week but offered few details.

The euro fell to $1.2296 from $1.2356. The British pound fell to $1.5635 from $1.5650.

In the U.S., the Labor Department said that the number of people applying for unemployment benefits last week fell by 6,000 to 361,000. That's a sign that the job market is slightly improving.

The dollar rose to 78.57 Japanese yen from 78.52 yen and to 0.9768 Swiss franc from 0.9723 Swiss franc.

The dollar fell to 99.21 Canadian cents from 99.52 Canadian cents.