The euro ended its day lower against the dollar, despite concerns over emerging inflation in the US. The greenback was helped late on by an outbreak of short covering, dealers said. Earlier in the day it had been weakened by concerns about deflation after news that US consumer prices fell 0.3 pc in April - the largest drop in consumer prices since Oct 2001.
Dealers said that - despite the worries of market players - this weekend's G7 conference in France was unlikely to culminate in news that would impact currency spot rates. US Treasury Secretary John Snow has indicated that he will not bring up the issue of currencies and intervention.//www.fxcentre.com