Wednesday, 22 August 2012 09:36
NEW YORK: The dollar weakened against other major currencies Tuesday as investors grew more willing to take risks amid speculation that the eurozone's debt crisis may be on the mend.
The euro surged to $1.2470 around 2100 GMT, up from $1.2342 at the same time Monday. Earlier the European currency hit $1.2488, a seven-week high.
The euro also rose against the Japanese currency, to 98.84 yen from 97.97 yen Monday.
The dollar slipped to 79.27 yen from 79.35 yen.
Analysts said that optimism was settling in over Europe's attempts to address the eurozone debt crisis, encouraging investors to pull away from the safe-haven dollar.
"Investors the world over are coming to terms with the European Central Bank's reported plan to put a cap on sovereign bond yields for struggling nations of the eurozone," said Neil Gilbert, an analyst at FX360.
"I say 'reported plan' because nothing has been confirmed at this point by anyone of power ...