Dollar Falls To 15-month Low Despite US Support

NEW YORK (AP) — The dollar dropped to a new 15-month low as the the euro rose above $1.50 Wednesday morning, even as Treasury Secretary Timothy Geithner reiterated the administration's stance that a strong dollar is good for the U.S. economy.

Geithner, in a speech in Tokyo on his way to a summit of Asian finance ministers in Singapore, also said low interest rates and other government supports for the economy were still needed.

The expectation that the Federal Reserve will keep the key U.S. interest rate near zero has been weighing on the dollar. Higher interest rates make a currency more attractive for investors, since bets made in that currency can earn higher returns.

In morning trading in New York, the 16-nation euro rose to $1.5026 from $1.4978 late Tuesday. The British pound fell to $1.6665 from $1.6737, and the dollar edged up to 89.80 Japanese yen from 89.77 yen.

The dollar also slipped to 1.0047 Swiss francs from 1.0081 francs, and fell to 1.0455 Canadian dollars from 1.0496 late Tuesday.