LONDON, July 22: The dollar moved higher against the euro on Tuesday on comments from a Federal Reserve official signalling a possible rise in US interest rates and fresh support for the US financial system from the Treasury chief.

The single European currency was at $1.5812 in late-day trade after $1.5921 on Monday.

The US unit was at 107.05 yen, up from 106.41 yen late Monday.

The dollar found support from US Treasury Secretary Henry Paulson who renewed his backing for troubled US mortgage finance giants Fannie Mae and Freddie Mac.

Paulson said “the most important thing ... to support a strong dollar is confidence in capital markets and the economy,” noted Melinda Smith of ABN Amro.—AFP