The Associated Press April 5, 2011, 9:24AM ET

Dollar gains versus euro after Portugal rating cut

The dollar is rising against the euro after a credit ratings agency cut Portugal's debt rating, focusing attention on Europe's lingering debt crisis.

The dollar is also higher against most other currencies around the world after China increased its key interest rates for the fourth time since October. Slower lending and spending in China, whose growth has propelled the world's recovery from the recession, could weigh on world trade.

In morning trading Tuesday in New York, the euro dropped to $1.4165 from $1.4216 late Monday. The dollar is up to 84.41 Japanese yen from 84.04 and is up 0.2 percent to against a group of six major currencies.

But the British pound has climbed to $1.6250 from $1.6125.

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