Dollar Near Two-Month High Amid Europe Contagion, Korea Concerns
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The dollar traded near a two-month high against the euro amid speculation more European nations will join Ireland in receiving bailouts and as tensions between North and South Korea escalated.
The euro weakened against 11 of its 16 major peers after European Central Bank council member Christian Noyer said monetary easing creates the potential for global imbalances. The dollar was supported as South Korean President Lee Myung Bak vowed to make the North pay for military attacks. Thailand’s baht reached an eight-week low before a court decision that may force the ruling Democrat party to disband.