The dollar rose against major currencies on Monday as investors, worrying about the global economy and health of financial industry, took the greenback as safe haven.

Bank stocks fell sharply on Monday in Europe and US markets as the British government took a majority stake in Lloyds Banking Group over the weekend in a deal to insure toxic assets of the bank.

Worries over nationalization of major banks drove investors away from risky assets, although market sentiment has been boosted briefly in early trading by the merge deal of pharmaceutical giants Merck and Schering-Plough.

The dollar was also helped by a report showed that Japan recorded a current account deficit in January for the first time in 13 years. The deficit, a record high since 1985, came as demand for Japanese exports tumbles amid the global economic crisis and a stronger yen.

The euro bought US$1.2629 in late New York trading compared with US$1.2662 it bought late Friday. The pound fell to US$1.3800 from US$1.4094.

The dollar rose to CA$1.2959 from CA$1.2888, and rose to 1.1587 Swiss francs from 1.1565 Swiss francs. It rose to 98.85 Japanese yen from 97.95 Japanese yen.

(Xinhua News Agency March 10, 2009)