Dollar mixed on earnings news

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- The dollar was mixed Tuesday as investors welcomed strong quarterly results from Goldman Sachs but remained wary about fiscal challenges facing Greece.

What prices are doing: The dollar rose 0.3% versus the euro to $1.3443 and slipped 0.2% against the U.K. pound at $1.5371. Against the Japanese yen, the dollar gained 0.8% to ¥93.15.

What's moving the market: With no economic reports out Tuesday, investors were focused mainly on corporate earnings and global stock markets.

Shares of Goldman Sachs (GS, Fortune 500) fell as investors remain concerned about allegations the bank defrauded investors, even after it reported a $3.5 billion first-quarter profit.

But U.S. stocks rose on strong earnings reports and tracked gains in overseas markets.

Despite the general rebound in demand for risky assets, the euro remained under pressure amid ongoing concerns about the debt crisis in Greece.

Greece received stronger than expected demand at an auction of short-term Treasury bills, but historically high yields fueled doubts about the country's ability to refinance maturing debt.

Meanwhile, the pound rose after a report showed British consumer prices unexpectedly rose in March.

What analysts are saying: "Investors continue to seek safe havens, and traders are talking openly about default risks for Greece," said Carl Weinberg, chief economist at High Frequency Economics, in a research report.

While Greece was able to raise 1.9 billion euros in a sale of 3-month bills, investors are demanding a 3.65% interest rate. That compares with a rate of 1.6% on the debt those bills will replace, according to Weinberg.

"Investors are increasingly worried about Greece's ability to refinance its maturing debt, never mind raise new money in the markets," he said.  To top of page

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