Early afternoon trade in New York: euro rises for third day

The euro rose against the dollar for a third straight day on Tuesday, buoyed by hopes European policymakers are planning to boost a bailout fund, but gains could be fleeting given investors remain cautious. Talk of co-ordinated action to contain the eurozone debt crisis was accompanied by denials from policymakers that bailout cash would be increased.
That frustrated investors eager for a lasting solution to the region's drama. In early afternoon New York trading, the euro rose 0.5 percent against the dollar to $1.3608, way above an eight-month low of $1.33600 hit on Monday. The Aussie dollar was up 1.2 percent against the US dollar at US $0.9958. The Kiwi dollar gained 1.9 percent to at US $0.7948. The US dollar traded 0.3 percent higher at 76.58 yen, hovering close to a record low of 75.94 yen set last month.