Dollars eases on euro; gold comes off record

NEW YORK: The dollar fell slightly against the euro and gold came off its record Tuesday as safe-haven flight eased slightly on hopes of eurozone and US debt deals.

At 2100 GMT the euro bought $1.4150, compared to $1.4117 a day earlier.

The euro and dollar both gained on the safe-haven Swiss franc, which had hit new highs in recent days.

The euro traded to 1.1665 francs (1.1543), while the dollar bought 0.8240 francs (0.8174).

Gold meanwhile edged up to a new record, $1,610.10 per ounce, before profit-taking set in and it dropped to below $1,590.

The calmer trade came despite mixed signals on the path of the European Union's talks on a new rescue plan for Greece.

But traders were evidently encouraged by suggestions of more flexibility by the European Central Bank, as well as, on the other side of the Atlantic, President Barack Obama's statement that there was strong progress towards a long-term deal on reducing the US deficit.

Also helping were good corporate results that boosted US and Europe stock markets.

"Risk appetites are firmer and the US dollar is weaker," said Vassili Serebriakov of Wells Fargo.

"There have been some renewed hopes for a Greek aid deal being reached at the EU leaders' summit on Thursday, while hints of a more flexible ECB stance on the issue of sovereign bond collateral are also helping to ease market fears."

The dollar picked up to 79.21 yen (79.02 yen) while the British pound rose to $1.6132 ($1.6055).

Copyright AFP (Agence France-Presse), 2011