Friday, August 19, 2011

Europe's economic doldrums help support dollar (AP)

NEW YORK ? The dollar is getting a lift against the euro because of the government debt crisis in Europe, though it weakened against the British pound and Japanese yen.

French and German leaders were meeting Tuesday to discuss the swelling crisis, which has worried investors since last year.

But stagnating growth in Europe ? even Germany's economy, the continent's powerhouse, grew at a rate of 0.1 percent in April through June, down from 1.3 percent in the first three months of the year ? may both exacerbate the problem and make it politically difficult to raise money to cure the crisis.

By midday in New York Tuesday, the euro retreated to $1.4403 from $1.4451. It had veered sharply higher Monday on hopes that the European summit would help mitigate the crisis.

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/ap/20110816/ap_on_bi_ge/us_dollar

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