Dollar rises on European support
Finance ministers say they 'want a strong dollar' to offset rising export prices.
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| Click the chart to view other FX rates. |
NEW YORK (CNNMoney.com) -- The dollar rose against major rivals Tuesday after euro zone officials said they support a stronger greenback.
At a Eurogroup finance ministers' meeting in Luxembourg Monday, several officials expressed hope for a firmer dollar in the months ahead.
At the meeting, French Finance Minister Christine Lagarde said the Eurogroup wants and needs a strong dollar, according to Reuters. With the euro gaining significantly on the dollar, the euro zone's exports are more expensive to foreign buyers.
European Central Bank President Jean-Claude Trichet backed Lagarde's comments, saying excessive volatility in foreign exchange rates will hinder global economic recovery.
The dollar edged up 0.24% against the euro, to $1.4928. The greenback also rose 0.35% against the British pound to $1.6367.
On Tuesday, Reuters reported that top French presidential adviser Henri Guaino said the euro at $1.50 would be a "disaster" for the European economy.
The dollar has been pressured in recent months. Investors remain concerned that the Federal Reserve will hold rates near zero and that the weakened dollar could lose its place as the world's dominant reserve currency.
Stocks tumbled in midday trading after DuPont (DD, Fortune 500) and Coca-Cola (KO, Fortune 500) reported weaker revenue that missed forecasts. The dollar tends to rise when the stock market falls, as investors seek a safe haven.
In a press conference Tuesday, Japanese Finance Minister Hirohisa Fujii said the Fed's policy was causing the dollar's weakness.
"The United States is caught in a dilemma. You can't deny that the current yen rise was caused by a weak dollar," Fujii said, according to Reuters.
The dollar jumped against the yen Tuesday, buying ¥90.73. Both currencies are considered safe havens.
At a conference of the Federal Reserve Bank of San Francisco on Monday, U.S. Fed Chairman Ben Bernanke discussed pre-recession trade imbalances. According to Reuters, Bernanke said Asian countries need to rely less on export growth and encourage consumers to spend more. 
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