The dollar fell to a 5-month low against the euro on Friday and lost ground against other major currencies as traders looked for investments that could get them better returns. Analysts say currency traders are reluctant to buy dollars because they expect that the Federal Reserve will try to drive interest rates lower. Lower rates tend to weigh on currencies, according to AP. In morning trading in New York, the euro traded at $1.3466, up from $1.3335 late Thursday. Earlier in the day, it rose as high as $1.3476, its strongest level since late April. A survey that showed a surge in German business confidence also helped the euro, which has risen more than 3 percent in the aftermath of the Fed's suggestion on Tuesday that it is ready to make bigger moves to support the U.S. economy. Still, the euro's gains may be restrained this fall. The euro remains «particularly vulnerable to renewed sovereign debt jitters,» said Bank of New York Mellon currency analyst Michael Woolfolk. The dollar also lost ground against the yen in New York trading, erasing overnight gains that prompted speculation among traders that Japan had intervened in currency markets for the second time in two weeks. But the Bank of Japan, the finance ministry and Cabinet all said they could not comment on that speculation _ a departure from last week when Japan intervened in currency markets for the first time in six years. The dollar fell to 84.27 yen in morning trading in New York from 84.38 yen late Thursday. Earlier in Asia, the dollar had risen as high as 85.38 yen. In other New York trading, the British pound rose to $1.5806 from $1.5696, while the dollar dropped to 1.0255 Canadian dollars from 1.0322 Canadian dollars. The U.S. currency also fell to a 2 1/2 year low versus the Swiss franc. It dropped to 0.9808 Swiss francs from 0.9855 Swiss francs, earlier dipping to 0.9780 Swiss francs, the dollar's weakest level since March 2008.
