The dollar rose against the euro on Thursday after Goldman Sachs analysts said the dollar's drop may be at an end and a new report indicated weaker consumer confidence in France, one of Europe's key economies.
The dollar rose to $1.4749 per euro at 2:47 p.m. in New York, from $1.4841 yesterday.
Goldman Sachs analysts led by Jim O'Neill wrote Thursday that selling gold will give investors an avenue to benefit from the prospect of a stabilization in the dollar.
We would now use a short exposure in gold, expressed in U.S. dollars, to capitalize on a gradual relaxation of credit concerns in the financial sector over the coming months,'' Goldman analysts wrote. Selling gold will also provide an avenue to benefit from the prospect of a stabilization in the dollar.''
The gain against the euro came as new report showed consumer confidence drop for November fell in France, according to national statistics office Insee. The index fell to -28 from a revised -23 in October. Dow Jones Newswire analysts had expected a reading of -24.
Later tonight, Federal Reserve Chairman Ben Bernanke will give a speech in North Carolina, outlining his economic outlook. The dollar has slipped in recent days as concern has grown that the Federal Reserve may move to further cut interest rates.