Euro on the rise again versus the US dollar (AP) (28-01-2008)

BERLIN (AP) -- The European currency gained against the U.S. dollar on Monday as speculation continued among traders regarding the possibility of another interest rate moves in Washington and Frankfurt.

The euro was worth US$1.4718 in morning trading, up from US$1.4673 in New York late Friday, while the British pound rose to US$1.9815 from US$1.9813, and the dollar fell to 106.48 Japanese yen from 106.79 yen.

Traders were looking for hints ahead of the meeting of the U.S. Federal Reserve on Wednesday as to whether it may cut American rates further, and by how much.

The Fed last week sought to restore calm with a surprise three-quarter-point cut in interest rates. Many expect a further cut of 50 basis points at the Fed's regular meeting this week.

The question also remains of what the European Central Bank will do when it next meets. ECB officials so far have indicated that they do not plan to follow the Fed in cutting rates.

Source: AP