Euro up to $1.4661 in European trade

FRANKFURT: The euro was higher against the dollar Monday even as worries persisted about government debt and credit in euro-zone nations Greece and Spain.

The 16-nation euro bought $1.4661 in European morning trading, up from $1.4617 late Friday in New York.

The British pound fell to $1.6220 from $1.6241. The dollar climbed to 88.57 Japanese yen from 88.20 yen.

The euro dropped as low as $1.4587 Friday, its deepest level since early October, amid worries about the stability of government finances in European countries that use the euro weighed in.

Greece's government has promised to step up efforts to reduce the deficit after a ratings agency downgraded the country's debt rating. Also last week, a rating agency lowered the credit rating outlook for Spain to negative.

"The euro now looks set to test down to $1.4480 ... in the near term, as debt concerns among euro zone countries continue to weigh," said Michael Hewson, a currency analyst at CMC Markets.

Reassuring news for investors came Monday from Dubai, whose government said it has received $10 billion in emergency funds from oil-rich neighbor Abu Dhabi that will help pay debts owed by the struggling Dubai World conglomerate

On Friday, a U.S. Commerce Department report showed the holiday shopping season could be brighter than anticipated, raising speculation that the Federal Reserve could raise interest rates in the first half of 2010.