The U.S. dollar rose against most of the world's currencies Tuesday as investors sought safety in the world's most heavily traded currency, AP reported. Worries about the economy in Europe and China helped support the dollar, which traders have traditionally considered a safe haven during periods of geopolitical tensions or concerns about the health of the global recovery from the recession. In morning trading Tuesday in New York, the euro dropped to $1.4459 from $1.4544 late Monday. The dollar rose to 81.12 Japanese yen from 80.78 yen. The British pound fell to $1.6090 from $1.6096. Against six of the world's most actively traded currencies, the dollar rose 0.4 percent. The credit ratings agency Standard & Poor's warned on Monday that a plan backed by European politicians to include private-sector lenders in the new aid package would likely be a default. Central bankers do not want a default, which could unleash a crisis in financial markets. Also on Tuesday, a report said retail sales in the 17 countries that use the euro dropped 1.1 percent in May, the latest sign of slowing growth. There are worries as well about slower growth in China, the world's No. 2 economy. The government is concerned about inflation. Barclays economist Jian Chang expects a rate increase in July. That could weigh on growth and hurt the companies around the world that sell goods to China. In other trading Tuesday, the dollar rose to 96.12 Canadian cents from 96.09 Canadian cents, but fell to 0.8445 Swiss franc from 0.8477 Swiss franc. -- SPA
