Dollar rises against euro on strong U.S. economic news |

Dollar rises against euro on strong U.S. economic news

NEW YORK – The dollar rose against the euro Tuesday after data showed U.S. industrial output posting a solid increase in December.In late trading in New York, the 12-nation currency bought $1.2095, down from 1.2129 Friday. U.S. markets were closed Monday for the Martin Luther King Jr. holiday.The British pound bought $1.7664, down from $1.7758 Friday.The dollar bought 115.51 Japanese yen late Tuesday, up from 114.19 on Friday; 1.1634 Canadian dollars, up from 1.1612 on Friday; and 1.2806 Swiss francs, up from 1.2769 on Friday.The euro rose as high as $1.2143 as inflation numbers in Germany, Europe’s largest economy, underlined recent European Central Bank indications that interest rates were more likely to rise in the future.Germany’s Federal Statistics Office confirmed a previous estimate that inflation in 2005 averaged 2 percent, the highest rate since 2001, driven by rapidly climbing energy prices.Late last week, ECB President Jean-Claude Trichet had warned the bank would be vigilant about inflationary pressures amid signs that growth is picking up.However, the dollar came back after the U.S. Federal Reserve reported that production at the nation’s factories, mines and utilities rose by 0.6 percent last month following gains of 0.8 percent in November and 1 percent in October.The three strong months represented a recovery in industrial production following a 1.3 percent plunge in September that reflected widespread shutdowns of oil wells, refineries and chemical production in the wake of Hurricane Katrina.Vail, Colorado

Support Local Journalism