London: The dollar rose to the highest level in five weeks against the euro and climbed versus the yen after investors judged the Federal Reserve may pause cutting interest rates.

The dollar rose to 1.5527 in early trade in New York, from 1.5622 yesterday. It touched 1.6019 per euro on April 22, the lowest level since the 15-nation currency's launch in 1999.

The dollar rose against the yen to 104.13 from 103.91. The euro fell to 161.65 yen from 162.36. The dollar gained 4.2 per cent against the yen and 1.1 per cent versus the euro in April. It's down about 7 per cent against both currencies this year.

The euro advanced 3.2 per cent versus the yen last month, paring this year's loss to 0.5 per cent. The US currency advanced after the Fed lowered its benchmark rate a quarter-percentage point to 2 per cent yesterday and said the seven rate reductions since September were "substantial".

The pound gained to the highest level in more than a month against the euro, helping to boost the dollar, after the Bank of England said the worst of the credit crisis in the UK may be over.
Source : PTI