The U.S. dollar was little changed Tuesday against the euro, which remained above US$1.30 despite strong talk from Washington about addressing the budget deficit and pleas from Europeans for the U.S. to take action to prop up the flagging currency.
The 12-nation euro initially fell against the dollar after its 1999 debut and bottomed out at 82 U.S. cents in October 2000.
But it has been rising steadily on concerns about burgeoning U.S. trade and budget deficits, and rocketed from US$1.20 in September to an all-time high of US$1.3667 at the end of December before receding slightly.
The weak dollar has been good for U.S. exports, making American products cheaper overseas, but has had the opposite effects on European goods, making them more expensive.
On Monday, French Finance Minister Herve Gaymard, following a meeting with his German counterpart Hans Eichel, appealed to Washington to address concern over the deficits.
"The imbalances at the origin of the dollar's structural fall ... persist and everything must be done to remedy them," Gaymard said.
In Washington, U.S. Treasury Secretary John Snow said that the Bush administration was committed to getting the federal budget deficit under control as a way to help support the dollar's value. But he also said other things needed to be done to correct huge global trade imbalances, saying that as trading partners grow, there will be bigger markets for U.S. exports.
Still, the statements had little effect on the dollar, which was slightly down against the euro at US$1.3059 from US$1.3048 late Monday.
The British pound was at US$1.8781, slightly weaker than US$1.8793 late Monday, while the dollar bought 103.18 yen, up from 102.72 yen Monday.