Dollar perks up on anti-euro warning

Tokyo, March 21 | Updated: Mar 22 2005, 05:30am hrs
The dollar rose to a two-week high against the euro and yen after the chief executive of Hong Kong Monetary Authority Joseph Yam suggested Asian central banks shouldnt rush to boost euro holdings at the expense of dollar. The euro may become so popular in this region, it may undermine the stability of international finance, said Mr Yam.

Against the euro, the dollar advanced to $1.3189 as of 9:33 am in New York, from $1.3325 on March 18, its biggest gain versus the common currency since January 7, according to electronic currency-dealing system EBS. The dollar rose to 105.38 yen from 104.75, and also strengthened against 16 major currencies.

Asian central banks are wary of appreciation in the euro, and by default, a rapid decline in the dollar, said Monica Fan, head of currency strategy in London at RBC Capital Markets.