Dollar surges on Goldman fraud charge

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- The dollar rose against the euro and the pound Friday after the Securities and Exchange Commission charged Goldman Sachs for defrauding investors and amid ongoing concerns about Greek debt.

The dollar was up 0.5% versus the euro to $1.3507 and gained 0.7% against the U.K. pound to $1.5383. Against the Japanese yen, the dollar was down 1% to ¥92.11.

Investors flocked to the dollar for its safe have appeal after the SEC alleged that Goldman Sachs (GS, Fortune 500), a Wall Street behemoth, and its vice president Fabrice Tourre, failed to disclose information to investors in a sale of securities tied to subprime mortgages.

The euro also suffered as yields on Greek bonds remained elevated on concerns the debt-stricken nation will be forced to accept emergency aid from the European Union and International Monetary Fund.

"There was a spark that set off a big fire and that was Goldman today," said Brian Dolan, chief currency strategist at Forex.com. "But there was some smoldering going on before that. Greek and euro zone deficit concerns are not going away any time soon."  To top of page

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