The dollar rose to fresh four-month highs against the euro on Tuesday as European traders came back from the long Easter weekend ready to focus on strong U.S. economic fundamentals. Dealers said investors were reversing the position-squaring that had kept the dollar subdued before the four-day Easter break, eyeing U.S. economic figures after a surprisingly robust jobs report at the start of April got markets talking about the potential for U.S. interest rate hikes. "Since that payrolls report the fundamentals have heavily favoured the dollar. It was just the Easter break pending -- the threat of terrorism and what was happening in Iraq -- holding the dollar back," said Lee Ferridge, head of global currency strategy at Rabobank. "This morning those fears are there but because we haven't got the four-day break facing us, people are more inclined to take fresh positions." By 0725 GMT the dollar firmed as far as $1.1974 per euro , its highest since early December. It also traded broadly higher against the Swiss franc, sterling and the Australian dollar.|||www..com