Market rounds on dollar as US doubts gather

The euro surged to $1.127 against the greenback on May 1, and registered four-year highs against the yen and the British pound. But analysts said its strength was less about positive eurozone news than continued US gloom.

"The dollar has been hit on all fronts," said Stephen Jen, currency economist at Morgan Stanley in London. "The euro has attracted a lot of attention as the biggest alternative currency, but this is clearly a dollar story."

At the root of the dollar’s problems is the US econ