Dollar Rises Against Euro, Yen; Greenspan Says Growth Is `Reasonable Pace'

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March 2 (Bloomberg) -- The dollar rose against the euro as Federal Reserve Chairman Alan Greenspan said the U.S. economy is expanding at a ``reasonably good pace,'' while a European Union report showed growth in the region stagnated.

The dollar is up 3.3 percent this year on expectations the Fed will add to six interest-rate increases since June while the European Central Bank keeps its benchmark unchanged. ``The economy is now developing its own momentum,'' Greenspan told the House Budget Committee today in Washington.

``There's no doubt the U.S. economy is in much better shape than Europe,'' said Paresh Upadhyaya, a currency portfolio manager who is part of a team overseeing $29 billion at Putnam Investments in Boston. ``That is in great part why are we seeing some support to the dollar at the start of the year.''

Bloomberg