March 10 -- The dollar rose against the euro in New York on speculation the U.S. economy will grow faster than Europe, where Germany is struggling to emerge from recession.
The dollar climbed even after a government report showed the U.S. trade deficit unexpectedly widened in January to a record. Germany's DIW economic institute cut its first-quarter growth forecast, saying there are still no clear signs that a recovery is taking hold in Europe.
``The U.S. economy is clearly doing better than anybody else's,'' said Ram Bhagavatula, chief economist in New York at Royal Bank of Scotland Plc. ``The exchange market is saying U.S. growth is here to stay.''
Against the euro, the dollar was at $1.2262 at 9:08 a.m. in New York, according to EBS prices, from $1.2326 late yesterday. The U.S. currency is 2.7 percent higher versus the euro this year after shedding 17 percent in 2003.
The dollar climbed even after a government report showed the U.S. trade deficit unexpectedly widened in January to a record. Germany's DIW economic institute cut its first-quarter growth forecast, saying there are still no clear signs that a recovery is taking hold in Europe.
``The U.S. economy is clearly doing better than anybody else's,'' said Ram Bhagavatula, chief economist in New York at Royal Bank of Scotland Plc. ``The exchange market is saying U.S. growth is here to stay.''
Against the euro, the dollar was at $1.2262 at 9:08 a.m. in New York, according to EBS prices, from $1.2326 late yesterday. The U.S. currency is 2.7 percent higher versus the euro this year after shedding 17 percent in 2003.
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