TOKYO - The dollar rose Thursday on news of the death of the Al-Qaeda chief in Iraq, Abu Musab al-Zarqawi, dealers said.
"Clearly, this news added to the momentum of the dollar, which was already on an upturn on the improved outlook for US interest rates," said Bank of Tokyo Mitsubishi UFJ forex analyst Masashi Hashimoto.
"Whether this development will help revive sentiment towards the dollar from a long-term view point is still far from clear at this point," Hashimoto said.
The US currency rose to as high as 114.03 yen and the euro fell to 1.2748 dollars after news of the death broke, before the greenback pared its gains.
Shortly beforehand the dollar had stood at 113.85 yen, while the euro was at 1.2759 dollars.
Iraqi Prime Minister Nuri al-Maliki announced the death of the fugitive Islamist who topped a US most-wanted list in Iraq since Saddam Hussein's downfall in April 2003, saying he "has been eliminated."
06/08/2006 08:36 GMT