Dollar Rises Against Euro, Yen

NEW YORK  – The dollar is rising against the euro,
recovering some recent losses as steep borrowing costs in Europe
remind investors of the region’s debt crisis.

Investors’ expectations that inflation will drive the European
Central Bank to lift interest rates soon has overshadowed the
continent’s ongoing debt woes this year. A European rate hike would
help boost the euro.

But analysts say a credit ratings agency’s downgrade of Greece’s
debt on Monday and Portugal’s high cost of borrowing and the
possibility it will need assistance have reignited debt concerns.

In morning trading Tuesday in New York, the euro retreated to
$1.3882 from a four-month high above $1.40 on Monday. The dollar is gaining on the Japanese yen as oil prices retreat.