Euro up against U.S. dollar - 15 June, 2007

The 13-nation euro rose Friday against the U.S. dollar, as traders looked ahead to economic reports from Washington for hints on future interest rate decisions.

Photo: Euro up against U.S. dollar

Euro up against U.S. dollar

In morning trading, the euro bought US$1.3311, up from US$1.3307 in late New York trading the day before.

Compared to the Japanese yen, meanwhile, the dollar broke through its December 2002 high of 123.13 yen to purchase 123.27 yen. The rise came after the Bank of Japan failed to give any hint on the timing of its next rate hike.

Higher interest rates, a weapon against inflation, can strengthen a currency by making investments denominated in it more attractive.

The British pound fell slightly to purchase US$1.9693 from US$1.9694 the day before.

Traders were looking ahead to several reports out of the U.S., including CPI data, for direction on whether the U.S. Federal Reserve will increase rates when it next meets.

"A run of strong positive numbers here could well give the greenback some additional support as we move into the weekend break," said David Jones, chief market analyst for CMC Markets.