Forex - Dollar rises vs. euro amid U.S.-China currency spat

Forex Pros – The U.S. dollar rose against the euro on Monday, amid rising U.S.-China tensions in the wake of a refusal by the Chinese Prime Minister, Wen Jiabao, to allow his country's currency to appreciate.

EUR/USD slipped to 1.3751 shortly before the European trading session, shedding 0.16%.

The pair was likely to find resistance at 1.4026, the high of Feb. 3, and support at 1.3434, the low of March 2 and a 9-month low.

The single European currency also slid versus the yen, with EUR/JPY dropping 0.2% to hit 124.94.

On Saturday, Wen spurned calls from the United States and other big economies for the yuan to rise, branding them unhelpful and protectionist.

"We oppose mutual accusations between countries, and even using coercion to force a country to raise its exchange rate, because that's of no help to reforming the yuan exchange rate," the Chinese premier told a news conference.

Sovereign debt worries also limited gains for the dollar on Monday, Reuters reported, with traders citing reports that Moody's was due to say there would be downward pressure on the U.S.'s top credit rating unless public finances get in better shape than the Obama administration predicts.