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Jan. 7 (Bloomberg) -- The dollar traded near a five-week high against the yen after General Motors Corp. said rescue loans already pledged by the government should ensure the biggest U.S. automaker’s survival.

The dollar was also near its strongest in three weeks versus the euro on speculation U.S. President-elect Barack Obama’s $775 billion package of tax cuts and government spending will help the economy recover from a recession. The 16-nation euro fell against the yen as derivatives showed investors are betting the European Central Bank will lower its key interest rate by at least a quarter of a percentage point next week.

“The news about GM is a plus factor for the dollar,” said Akifumi Uchida, deputy general manager of the marketing unit at Sumitomo Trust & Banking Co. in Tokyo. “There are also rising expectations about how far Obama will go to revive the U.S. economy, making it difficult to bet on dollar declines.”

The dollar traded at 93.62 yen at 7:29 a.m. in London from 93.65 yen late yesterday in New York, when it touched a five- week high of 94.63 yen. Against the euro, it was at $1.3525 from $1.3536. The dollar appreciated to $1.3313 per euro yesterday, the strongest since Dec. 12. The euro traded at 126.62 yen from 126.75 yen yesterday, when it touched a two-week low of 125.19. The dollar may rise to 94.25 yen today, Uchida said.
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