The U.S. dollar gained against the euro Tuesday as traders anticipated hawkish comments on the economy from U.S. Federal Reserve Chairman Alan Greenspan later in the week, The Associated Press reported today. The 12-nation euro fell to US$1.1988 in morning European trading from US$1.2052 in New York the night before. It also gained against other major currencies, with the British pound falling to US$1.7397 from US$1.7480 and the dollar buying 112.63 Japanese yen, up from 111.91. In a letter Monday to Congress' Joint Economic Committee, Greenspan said high oil prices could crimp economic growth this year, but not derail it. Economists were looking ahead to Greenspan's semiannual testimony to Congress on Wednesday, anticipating he will stress that the economy is continuing to show solid gains and that inflation is remaining subdued. He was not expected to hint that the Fed would pause in hiking interest rates.
