FRANKFURT — The euro rose against the U.S. dollar on Tuesday, though investors remained cautious about risks in the market — which tends to push them to the relative safety of the U.S. currency and government bonds.
The 16-nation euro bought $1.4134 in European morning trade, up from the $1.4085 late Monday in New York.
The British pound also rose slightly to $1.6411 from $1.6340, while the dollar rose against the Japanese yen to 95.02 yen from 94.49 the night before.
“The forex markets remain focussed on risk aversion,” Calyon Credit Agricole analysts wrote in a research note.
“This recent bout of uncertainty, however, does not seem to rest on fears that the world is going to fall back into a deep recession, but simply that the pace of recovery will not be as rapid as some had hoped for.”