US dollar rises vs euro, yen

[NEW YORK] The US dollar firmed against the euro and yen on Tuesday as economic data and a surge in US auto sales helped to ease worries of a potential recession.

Around 2200 GMT, the euro dipped to US$1.0867 from US$1.0876 at the same time on Monday. The dollar rose 1.1 per cent to 113.94 yen.

A gauge of the US manufacturing sector, the ISM purchasing managers index for February, came in above expectations but showed the sector still marginally contracting, although many sectors reported good demand domestically.

US auto sales in February had their best performance since 2000.

"Consumers don't normally buy vehicles at this pace when the economy is near or in recession," said Ryan Sweet at Moody's Analytics.

The euro edged lower against the greenback despite data showing eurozone unemployment fell in January to its lowest level in more than four years.

Although the 10.3 per cent jobless rate was better than forecasts, it was still too high to help stimulate growth in the nearly stalled 19-nation eurozone, analysts said.

Kathy Lien of BK Asset Management said the prospect of the European Central Bank easing monetary policy at next week's meeting kept the euro under pressure.

AFP