Euro rises to 11-week high against the dollar

The euro rose to an 11-week high against the dollar Fri-day on increasing optimism about the global economy.

The dollar hit a seven-month high against the yen, a week after the Bank of Japan announced a surprise increase of its economic stimulus programme.

Investors are also looking ahead to a weekend meeting of the finance ministers from the world's 20 leading economies. The focus of the meeting will be on promoting global economic stability and growth.

The euro rose to $1.3466 in afternoon trading on Friday from $1.3337 late Thursday. The euro rose as high as $1.3486 earlier in the day, its highest point since December 5.

The euro rose to a two-month high on Thursday after business confidence surged in Germany. Investors interpreted the results that Germany is recovering even as many other countries that use the euro are struggling.

Better US economic data are also helping push the euro higher. On Thursday, the US government said that the number of Americans seeking unemployment benefits last week was unchanged. The four-week average was the lowest in four years.

Riskier currencies such as the euro tend to rise when investors think economic conditions are getting better.

The Japanese was worth 80.98 yen late Friday, after rising to 80.99 yen earlier in the day. That was the dollar's highest point against the yen since July 8.

The yen has been weakening against the dollar ever since the Bank of Japan's increase of its economic stimulus programme on February 14.

In other trading, the British pound rose to $1.5889 from $1.5716. The dollar fell to 0.8947 Swiss franc from 0.9041 Swiss franc.

The dollar rose to 1.0002 Canadian dollar from 99.88 Canadian cents.

- AP

Obama's Business Tax Plan

What the Obama administration's corporate tax reform plan would cover

Key points

    Eliminate tax loopholes, subsidies; broaden business tax base to reduce distortions that hurt productivity;
    lower corporate rate to 28%

    Refocus manufacturing deduction; use savings to reduce manufacturing effective rate to no more than 25 percent;
    encourage   more R&D in clean energy production

    Minimum tax on foreign earnings to encourage domestic investment

    Simplify and cut taxes for small businesses

    Either eliminate or make permanent and pay for the temporary tax provisions now in tax code

What Some industries pay now

Some industries use loopholes and tax breaks to pay less than the 35 percent top corporate tax rate; effective rates for 2007-08

Construction - 37%
Manufacturing - 26
Information - 25
Insurance - 25
Real estate - 23
Agriculture, forestry* - 22
Avg. effective actual rate - 26

* Includes fishing and hunting

©2012 MCT

Source: U.S.Treasury Department
Graphic Judy Treible