Dollar Gains After Bin Laden Death

[D Ghost]

TOKYO -- The dollar was buoyed against major currencies in Asian trading Monday following news that Osama bin Laden was dead, but sentiment toward the greenback stayed bearish after the Federal Reserve signaled last week it wouldn't tighten credit any time soon, even after completing its bond-buying program in June.

The euro, which benefited from speculation there will be a series of interest rate hikes by the European Central Bank this year, came under selling pressure against the dollar on the Mr. bin Laden news and a fall in oil prices.

Mr. bin Laden was killed in a targeted assault near Islamabad, according to a U.S. official. A Pakistani intelligence official described the raid as a "highly sensitive" joint intelligence operation.

The dollar was bought on the belief Mr. bin Laden's death could make the U.S. less subject to further terrorist attacks, as he was regarded as responsible for Al-Qaeda's attack on Sept. 11, 2001.

"The dollar has been bought on the news, but it is uncertain if this news alone will have a lasting impact on pushing the dollar up," said Yoshio Yoshida, a trader at a Mizuho Trust and Banking Co.

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