The dollar rose against the euro on Tuesday after a better than expected manufacturing report and news of plans by major banks UBS and Lehman brothers to raise capital.
The dollar was up, trading at $1.5591 at 12:25 p.m. in New York from $1.5788 on Monday. It also rose to 101.82 yen compared to 99.69 yen. The euro traded at 158.79 yen from 157.40 yen.
Manufacturing in March fell less than expected, according to the Institute of Supply Management. Its closely watched manufacturing index was up to 48.6 from 48.3. Readings below 50 indicate contraction in the sector. A survey of economists from Bloomberg New estimated a median reading of 47.5.
Meanwhile, Major European Swiss bank UBS said today it would seek 15 billion francs ($15.07 billion) in a rights offer to raise capital. Today the bank reported a $19 billion write down on debt securities.
Yesterday Lehman brothers also announced it would be raising up to $3 billion through a stock sale to increase its capital.