BUSINESS INFORMATION - Euro extends increase against the dollar on Monday local time

BUSINESS INFORMATION - Euro extends increase against the dollar on Monday local time, looked set to test the 1.50-dollar level again, as investors take more risks, pushing the stock market and higher commodity, dealers said.

They said there were some initial caution that the euro zone finance ministers may try to talk about the strengthening euro, which inhibit export, but at the end of this trade has faded and the dollar once again defensive.

Because investors gain confidence in the prospects of recovery from the global decline in recent years, those seeking higher returns than those available in the "safe haven" traditional dollar, they added.

In late London trading, the euro rose to 1.4947 dollars from 1.4903 dollars in New York at the end of Friday.

Against the Japanese currency, the dollar fell to 90.47 yen from 91.09 yen in late Friday.

Dealers said the euro benefited from a sense of greater risk.

Last week, the euro reached 1.4968 dollars, its highest level in 14 months and appeared on track to break through the 1.50 dollar weakened and data before taking action to make the unit's profit sank back.

Finance ministers from 16 countries that use the euro gathered in Luxembourg on Monday, amid fears in the region that a strong currency to curb exports and impede recovery.

"There is speculation that European officials may make comments to check the power of the euro," said Yuji Saito, head of foreign exchange at Societe Generale in Tokyo.

Dealers said a speech by Federal Reserve chairman Ben Bernanke does not have a direct impact on trade.

United States and Asia must work to avoid imbalances "sustainable" in trade and capital flows that can destabilize the global financial system, Bernanke said.

Bernanke said in a conference in California on Asia and the global financial crisis that the United States need to save more and most Asian economies have increased efforts to stimulate consumption in order to achieve a better balance.

Dealers noted European concerns about dollar depreciation, seeing in it a threat to European exports.

"If the euro were to continue moving along the lines of recent weeks, there is a risk ... it could slow economic recovery in Europe," said Jean-Claude Juncker, who heads the Euro group, warned on Friday.

In London at the end of Monday, the euro changed hands at 1.4947 dollars against 1.4903 dollars late Friday, at 135.22 yen (135.44), 0.9122 pounds (0.9109) and 1.5139 Swiss francs (1 , 5177).

Dollar stood at 90.47 yen (91.09) and 1.0128 Swiss francs (1.0179). The pound was at 1.6388 dollars (1.6357).

On the London Bullion Market, gold prices rose to 1054.50 dollars per ounce from 1047.50 dollars per ounce on Friday night.