NEW YORK (AP) -- The euro is rising against the dollar on signs that the economies of the 17 countries that use the euro are recovering.

A closely watched purchasing managers' index for the euro zone rose to a 10-month high of 48.6 in January from 47.2 in December.

The euro rose to $1.3580 in afternoon trading from $1.3520.

The British pound fell to $1.5637 from $1.5766.

The dollar rose to 93.26 Japanese yen from 92.38 Japanese yen.