MARKETS-FOREX:FOREX-Dollar rises vs euro, eyes on US auto rescue
* Dollar rises vs dollar on position unwinding * Focus on fate of bailout for US automakers
By Kaori Kaneko
TOKYO, Dec 9 (Reuters) - The dollar rose against the euro on position unwinding on Tuesday, reversing some of the losses it suffered the previous day when a steep rally in global equities gave a boost to risk appetite.
But market players said it may be too early to conclude that the currency market has started to increase risk tolerance.
"The dollar's dip yesterday seems to have been largely driven by position adjusting, and it is premature to say that the trend in the currency market has changed," said Yousuke Hosokawa, treasury department senior manager at Chuo Mitsui Trust and Banking Company.
The euro fell 0.4 percent to $1.2912 after the European single currency rose as high as $1.2968 in U.S. trading, the highest since late November.
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