The dollar rose from a record low against the euro and traded above 100 yen as securities firms speculated central banks will collaborate to shore up the U.S. currency for the first time in 13 years.

Goldman Sachs Group Inc. and Morgan Stanley said coordinated action by policy makers to stem the currency's slide is increasingly likely. The gains limited the dollar's losses in a week when it fell to a 12-year low versus the yen, approached parity with the Swiss franc and traded above $2 per U.K. pound.

``The market is certainly on intervention watch,'' said Hans- Guenter Redeker, global head of currency strategy in London at BNP Paribas SA, France's largest bank. ``If I was in their shoes I would intervene in a concerted way that supported the dollar.''

The U.S. currency climbed to $1.5547 against the euro by 7:42 a.m. in New York, from $1.5635 yesterday. Earlier it fell to $1.5651, the weakest since the European currency's debut in 1999. The currency was at 100.62 yen, after dropping to 99.85 yen, from 100.65 yesterday.

The dollar was poised for a rebound, according to a gauge traders use to measure the momentum of currency moves. The currency's 14-day relative strength index is below 30 for a 13th straight day, indicating a dollar advance was overdue.

``Sentiment remains overwhelmingly dollar negative, though preliminary technical factors warn that a broader period of dollar consolidation may be at hand,'' Brown Brothers Harriman Inc. analysts led by Marc Chandler, global head of currency strategy in New York, said in a note to clients today.

Full article here.