LONDON (AFP) - The dollar fell against the euro and yen on Tuesday as the market digested positive German data, while the drop in the US currency boosted gold, which rose past 1,000 dollars an ounce, traders said.
In late morning trade here, the European single currency climbed to 1.4421 dollars from 1.4332 dollars in New York late on Monday.
Against the Japanese unit, the dollar fell to 92.30 yen from 93.08 yen on Monday.
"The softer dollar this morning encouraged gold prices to finally move above the 1,000 dollars an ounce level," said forex.com analyst Jane Foley.
Gold hit as high as 1,007.70 dollars an ounce on the London Bullion Market, the highest level since March 2008 when the metal had hit a record peak of 1,032.70 dollars.
Gold last broke through 1,000 dollars in February before falling back.
The yellow metal rose on Tuesday as a sliding dollar made the commodity cheaper for buyers holding rival currencies, pushing up demand.
Gold has also won support in recent months from investors seeking a safe-haven amid the global economic downturn and owing to the risk of higher inflation.
Elsewhere on Tuesday, investors digested news that Germany's trade surplus surged by 12 percent in July with exports gaining 2.3 percent from the previous month.
The surplus in Europe's biggest economy rose to 13.9 billion euros (19.9 billion dollars) from 12.4 billion euros in June, official data showed.
The July result largely exceeded an estimate from analysts polled by Dow Jones Newswires who had forecast a trade surplus of 12 billion euros.
Exports, the main motor of the German economy, came to 70.5 billion euros that month while imports were essentially unchanged at 56.6 billion euros.
The figures provided another sign that Germany, one of the leading global exporters, was emerging from its worst recession in six decades.
"It looks as if exports have again become a trump card. From burden to blessing within a couple of months," ING senior economist Carsten Brzeski said.
"The pick-up in economic activity in Asia is benefiting German exports. More than 12 percent of all German exports go to emerging Asia," he noted.
In London on Tuesday, the euro was changing hands at 1.4421 dollars against 1.4332 dollars late on Monday, at 133.10 yen (133.39), 0.8744 pounds (0.8767) and 1.5174 Swiss francs (1.5194).
The dollar stood at 92.30 yen (93.08) and 1.0523 Swiss francs (1.0600).
The pound was at 1.6491 dollars (1.6349).
On the London Bullion Market, the price of gold advanced to 1,005 dollars an ounce from 993 dollars an ounce late on Monday.
