Dollar higher on bailout hope

Investors discound disappointing economic news, focusing on optimism that approval of a rescue is near.

NEW YORK (CNNMoney.com) -- The dollar was mostly higher Thursday as investors clamped onto increasing optimism that approval of the government's $700 billion bailout plan was near.

The dollar rose against the Japanese yen, trading at ¥106.69, from ¥106.12 late Wednesday. Great Britain's pound dropped slightly to $1.8348 from $1.8465. And the 15-nation euro fell to $1.4614 from $1.4621.

Traders are taking any news signaling approval of the proposed bailout as positive for the market, said Amo Sahota, chief currency analyst with HiFX.

Bailout: Lawmakers have reached a counterproposal to President Bush's $700 billion bailout plan. It is believe to include plans for the Treasury to buy up mortgage-backed securities in an effort to get banks lending again, limits to executive pay packages, and a Treasury oversight board