The euro has hit USD1.15 this morning - the first time since July - as the dollar continues to suffer on the foreign exchange market. The euro is benefiting from a dollar slump against the yen after finance ministers from the Group of Seven (G7) countries called for more flexibility in exchange rates, effectively telling Japan to stop selling yen to weaken its currency. "The G7's statement was a clear signal to Asian currencies to allow their currencies appreciate against the dollar, instead of trying to keep them competitively weak," said Geraldine Concagh, senior economist at AIB Treasury. At 0900, the dollar was down almost 1pc at 111.20 yen, while the euro edged up 0.4pc to USD1.1504.
Analysts said this morning that it seems "unlikely that the [dollar] selling is over, against the Asian bloc and Japanese yen anyway". But Micheal Crowley at Bank of Ireland Treasury and International Banking said the euro needs a "clear break" above the USD115 level if a more sustained rally is to occur. "Failure to do so, on the other hand, would risk a move back to test support at USD1.1240," he added. ///www.fxcentre.com