December 05, 2007	Wednesday	Ziqa'ad 24, 1428

LONDON, Dec 4: The euro rose against the dollar on Tuesday while the Canadian dollar slumped after the Bank of Canada (BoC) surprised traders by cutting interest rates for the first time in three and half years.

The US dollar was weakened by comments made by Gulf Arab leaders about the peg of their currencies to the sliding US unit.

Though a two-day summit of the Gulf Cooperation Council (GCC) concluded with leaders pledging to maintain the peg, analysts said there were signs that some members wanted to follow Kuwait’s example and use a basket of currencies instead.

In late European trading, the euro stood at $1.4757, up from $1.4666 late on Monday in New York.

Elsewhere, the dollar fell to 109.80 yen from 110.44 late Monday.

The dollar stood at 109.80 yen (110.44) and 1.1176 Swiss francs (1.1274).—AFP