The dollar rose for a fourth day against the euro, rounding out its biggest weekly gain since January, as advancing stocks spurred buying of the US currency.
The US dollar improved to US$0.9735 per euro from US$0.9787 Friday and gained 1.8 percent this week.
It rose to Japanese yen 120.22 from ?120.08 Thursday and gained 0.6 percent since last Friday, for its strongest week since March.
"As long as stocks remain supportive, and they have for the past couple of days, we will see the dollar" rise, said David Gilmore, a partner at Foreign Exchange Analytics in Essex, Connecticut. "The stock market has been the proxy for the dollar recently."
The US needs to attract foreign capital to keep the dollar from weakening. The US had a record current account deficit of US$112.5 billion in the first quarter. Rallying stocks would encourage foreigners to keep their money in the US.
All three major US stock measures rose, with the Standard & Poor's 500 Index rallying 3.7 percent, for its biggest gain in almost two months. The index reached a 4 1/2-year low earlier this week.
The dollar rose to US$1.5222 per British pound from US$1.5260, and to SF1.5059 from SF1.4961.
Most analysts said the dollar's rally will probably be short-lived. A failure by US stocks to maintain gains, for example, would cause the dollar advance to falter, Gilmore said.
"I'm not anticipating much of a rebound in the dollar," said Eric Nickerson, chief currency strategist at Bank of America Corp. "It's a matter of foreign investors saying they have enough dollars already."
The dollar may weaken past the US$1 per euro mark within the next few months, said Nickerson, who is telling clients to use dips to buy the common European currency.
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