Dollar higher after key German court decision

THE dollar was trading around half a US cent higher, after Germany's top court ruled in favour of eurozone bailouts.

THE dollar was trading around half a US cent higher, after Germany's top court ruled in favour of eurozone bailouts.

At 6.20am AEST, the local unit was trading at 106.54 US cents, up from 106.06 cents yesterday afternoon.

European stocks soared overnight after Germany's Constitutional Court ruled the country's participation in eurozone bailouts was legal, giving investors hope a solution to the debt crisis may yet be found.

London's FTSE 100 index of leading companies climbed 3.14 per cent to 5318.59 points. In Paris, the CAC 40 jumped 3.63 per cent to 3073.18 points and in Frankfurt the DAX rose 4.07 per cent to 5405.53 points.

Locally today, the Australian Bureau of Statistics is due to release labour force figures for the month of August.

The data is expected to show 12,000 jobs were added to the economy in the month, the median of an AAP survey of 13 economists shows.

The unemployment rate is expected to be five per cent.