Dollar Cheered by U.S. Asset Flows Report By Gertrude Chavez NEW YORK (Reuters) - The dollar gained on Tuesday after data on asset flows showed investments coming into the United States were more than enough to cover the country's huge trade deficit on a monthly basis. Net flows of capital into U.S. assets surged to $81 billion in November from a revised $48.3 billion in October and were far above market expectations of around $55 billion. November's inflows more than adequately covered the trade deficit of around $60.3 billion for the month. "We've always thought that this is not going to be a down year for the dollar against European currencies. The markets are beginning to realize that U.S. asset returns will be relatively attractive," said Bob Sinche, head of global currency strategy at Bank of America in New York. "It (the assets report) continues to show that U.S. assets have appeal and that the scare stories about the twin (budget and trade) deficits aren't really valid," he added. By midmorning in New York, the euro had fallen to $1.3005 , down about 0.4 percent from late Monday. Earlier, the euro zone currency had dropped to two-month lows at $1.2996 in Europe as investors focused on rising U.S. interest rates. Higher interest rates tend to support a currency by making returns on deposits more attractive to global investors. The dollar was up 0.6 percent against the yen at 102.66 , roughly one yen above Monday's five-year lows. Against the Swiss franc, the dollar rose to 1.1868 francs . Sterling, meanwhile, pared gains to $1.8647 . Before the U.S. data, the pound was trading above $1.8700. Michael Woolfolk, senior currency strategist at Bank of New York, reckoned however that much of November's asset inflow was speculative, given an increase in investments from Caribbean money center banks, which are known to be financing channels for most hedge funds. The dollar showed little reaction to comments by Philadelphia Federal Reserve Bank President Anthony Santomero saying the central bank should continue raising U.S. interest rates at a measured pace until they reach a neutral level as the economy has embarked on a period of sustained expansion.     Continued ... Quelle "Dollar Cheered by U.S. Asset Flows Report" : reuters.com Main page for "Dollar Cheered by U.S. Asset Flows Report"