LONDON, Nov 26: The dollar gained on the euro on Wednesday despite another round of weak US economic reports and as the head of the European Central Bank said he was ready for more eurozone interest rate cuts.

Analysts said the relentless stream of grim data presaging a prolonged global recession had paradoxically boosted investor interest in the dollar, seen as a safe refuge in times of stress.

“In an environment of sharply slowing global growth and intense financial market strains, the dollar should continue to remain supported by deleveraging and repatriation flows,” said Lee Hardman of Bank of Tokyo-Mitsubishi.

At the same time, the markets were unmoved by news that the European Commission was to implement a 200-billion-euro scheme aimed at sparking growth in the recession-strapped eurozone.

The single European currency in late-day trade was at $1.2824, down from $1.3063 late Tuesday in New York.

The dollar was at 94.97 yen after 95.24 yen on Tuesday.

On the London Bullion Market, the price of gold fell to $812.50 an ounce at the fixing from $820.50 late on Tuesday.

—AFP