Dollar loses gains while euro moves higher (MarketWatch) (01-02-2012)

LONDON — The U.S. dollar lost its early gains after stronger-than-expected gauges of January manufacturing activity in China, while the euro zone and Britain showed further signs of recovery.

The ICE dollar index which tracks the U.S. currency’s performance against six rivals, fell to 79.064 from 79.278 late Tuesday in North America while the single currency rose $1.3130 from $1.3048.

The euro edged 0.1% higher versus the Swiss franc to CHF1.2050.

The British pound erased earlier weakness to trade at $1.5780, up from $1.5762 late Tuesday.

The Australian dollar, which closely tracks China and risk appetite, rose 0.7% versus the U.S. unit to change hands at $1.0668.

The yen showed further strength, with the dollar fetching ¥76.05 versus ¥76.21 late Tuesday.

Source: MarketWatch