Dollar gains power against Euro on expectations of US economic reports

The euro slipped against the U.S. dollar Monday as traders looked ahead to economic reports from the United States this week.

The euro bought US$1.2067 in European trading, down from US$$1.2092 in New York late Friday. The British pound fell slightly to US$1.7646 from US$1.7689.

The U.S. Federal Reserve's "Beige Book," a detailed regional assessment of the nation's economy, is due Wednesday. Traders are looking to it for details on the economic disruption wrought by Hurricanes Katrina and Rita as well as signs of inflation hitting particular markets.

The dollar rose slightly against the Japanese currency Monday, climbing to 114.40 yen from 113.92 yen.

The dollar has been stronger against the yen after the U.S. Federal Reserve made it clear it would not hold back from more interest rate increases amid concerns about inflation.

Higher U.S. interest rates tend to help the dollar by making assets denominated in the currency more attractive to investors, reports the AP.

P.T.