Tensions in Europe, Koreas boost dollar

NEW YORK (AP) — The dollar jumped Friday as a major credit ratings agency downgraded the debt of Ireland's banks and investors worried that Portugal would become the third European country to need a bailout this year.

Tensions also escalated in Asia as North Korea warned that U.S. and South Korean military maneuvers put the region on the brink of war. The sabre rattling drove investors to seek safety in the U.S. dollar. The U.S. currency tends to benefit during periods of international turmoil.

The euro, used by 16 European countries, fell to $1.3237 in late trading Friday from $1.3368 late Thursday, earlier dipping below $1.32 for the first time since Sept. 21. The British …