LONDON (AFP) - The euro approached a 12-month high against the dollar Thursday as confident investors, heartened by positive US corporate news, sought out currencies generally seen as riskier than the greenback.
The euro in late-day trade was at 1.4787 dollars against 1.4689 late Wednesday in New York. The single currency at one point bounced briefly above 1.48 dollars, not far from its year-long high near 1.49 of two weeks ago.
The dollar was meanwhile weaker against the yen, falling to 88.44 yen from 88.60.
The euro drew strength from comments from European Central Bank president Jean-Claude Trichet, who said the economic storm lashing the eurozone economy was abating.
The ECB earlier in the day held its key interest rate at 1.0 percent.
"Neither the ECB decision nor its communique produced any big surprise, but the euro moved higher during the (Trichet) press conference," said analyst Frederik Ducrozet of Calyon.
"The reason for this may be that Trichet sounded a little bit more explicit than usual on currencies, saying that 'excess volatility is having adverse implications on the economy'."
Trichet also called attention to what he said was the importance of a recent statement by US Treasury Secretary Timothy Geithner supporting a strong dollar.
The US currency in recent days has wobbled on indications its pre-eminence in international financial transactions is coming under sharp scrutiny.
The United States is suspected in some quarters of preferring to allow its currency to slide in order to boost the competitiveness of US exports.
The United Nations earlier this week called for a new global reserve currency to end dollar supremacy, which it said had allowed the United States the "privilege" of building a huge trade deficit.
While tending to support exports, a weak currency at the same time increases the price of imports.
Investors on Thursday were also emboldened by news that US aluminum group Alcoa unexpectedly returned to profit in the third quarter, seen as heralding good news from other US corporate giants -- Goldman Sachs, Bank of America, Wells Fargo and General Electric -- that will report their results next week.
"The market needs to see this earnings season continue to outperform expectations," said Joshua Raymond of City Index.
In London on Thursday, the euro was changing hands at 1.4787 dollars against 1.4689 dollars late on Wednesday, 130.48 yen (130.16), 0.9176 pounds (0.9203) and 1.5180 Swiss francs (1.5175).
The dollar stood at 88.44 yen (88.60) and 1.0290 Swiss francs (1.0329).
The pound was at 1.6097 dollars (1.5956).
On the London Bullion Market, the price of gold rose to 1,045 dollars an ounce at the fixing from 1,040.25 dollars an ounce late on Wednesday.
