NEW YORK: The dollar rallied against the euro Wednesday as investors worried about eurozone contagion from the growing Greek debt crisis.
The euro fell nearly two percent against the greenback in New York, trading at $1.4182 around 2100 GMT compared to $1.4440 at the same time Tuesday.
The dollar also firmed against the Japanese currency, rising to 80.92 yen from 80.45 yen Tuesday.
Trading was dominated by the latest drama in Greece. Protests swelled against the government's austerity measures after eurozone finance ministers failed Tuesday to agree a second bailout plan for Greece.
"Nobody sees any progress," said David Solin of Foreign Exchange Analytics, adding there were "just too many unknowns."
The uncertainties surrounding the Greek debt crisis, more than a year after the country obtained a huge European Union-International Monetary Fund bailout, were wearing down traders, he said.
"When you think about what's getting on there it's still amazing that the euro is still above $1.40," he added.
Kathy Lien at GFT said that investors shrugged off a dismal US reading on the manufacturing sector, showing activity in the New York region fell into negative territory for the first time since November.
"Part of the reason is because today is a risk-off day and concerns about developments in Europe have made the dollar unusually attractive," she said.
In late New York trade, the dollar stood at 0.8523 Swiss francs, up from 0.8454 Tuesday.
The pound fell to $1.6196 from $1.6368.
Copyright AFP (Agence France-Presse), 2011
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