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U.S. dollar continues climb on European debt woes

Investors Business Daily |

In Brief...

TOKYO (MarketWatch) ? The U.S. dollar edged higher in Asian trading Tuesday, finding support as investors continued to fret over the potential for a larger debt crisis in Europe.. The dollar index (DXY) , which tracks the performance of the greenback against a basket of other major rivals, rose to 78.840, up from 78.611 late Monday in North American trading. The dollar had also climbed against the euro on Monday, with Ireland facing a credit-ratings downgrade. The U.S. dollar strength against major currencies is ?a sign that investors are nervous about the consequences of Ireland's decision to receive financial aid,? Kathy Lien, director of currency research at GFT, said in a note to clients issued late Monday in New York. But ?the real reason why Ireland's announcement triggered more concern amongst investors than relief is because of contagion,? she said, explaining that ?the focus shifted quickly to Spain and Portugal, as investors wondering whether they would suffer the same fate as Ireland.

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