The euro has surged close to USD1.08 on the world's currency markets, as the dollar continues to languish on war fears. It reached a war high of USD 1.077 in trade last night against the American currency, and made gains as well against sterling and the yen. Analysts said the latest gains were due to a combination of war fear, position squaring and speculation about likely central bank intervention.
The euro also reached a two-week high against sterling at STG0.6875 as concerns over the length, and consequent costs, of the war continued to weigh on the pound after Chancellor Gordon Brown on Thursday increased the UK's budget for the war to STG3bn from STG1.75bn.//www.fxcentre.com