Dollar rises against the euro

NEW YORK (CNNMoney.com) -- The dollar rose against the euro Tuesday amid ongoing concerns about Greece and other troubled European economies.

What prices are doing. The dollar was up 0.6% versus the euro to $1.4299 and was steady against the U.K. pound at $1.6340. It was unchanged versus the Japanese yen at ¥90.84.

What's moving the market. The euro was under pressure for a second day amid ongoing concerns about the Greek economy, which is struggling to repay its debts and was downgraded by several credit rating agencies last week.

European finance ministers held a second day of talks about, among other things, how to deal with struggling E.U. members Greece, Portugal, Spain and Italy.

The pound rose earlier in the session after Kraft announced plans to buy British candy maker Cadbury for $19 billion in cash and stock.

But the gains faded as traders looked past a report that showed U.K. inflation rose a larger-than-expected 2.9% in December.

What analysts are saying. "Markets will remain on alert for fresh comments from Federal Reserve figures over the next few days," analysts at Sucden Financial wrote in a research report.

The U.S. central bank's Federal Open Market Committee (FOMC) will meet next week to discuss the economic outlook and will issue a statement Jan. 27. Analysts expect the bankers to hold interest rates steady near zero, but any changes in the Fed's outlook could roil the currency markets.

"It is likely the case that there will be divergent views within the FOMC which could trigger erratic trading conditions," the Sucden report said. "Overall, the dollar will find it difficult to gain further strong support on yield grounds unless there is tough rhetoric from key Fed officials."