The euro soared to a three-month high against the dollar this morning as the US currency continued to suffer against the yen. At 0900, the euro was worth USD1.1664, its highest level since 19 June. The single currency has risen 7.5pc since the beginning of September. "A spike in the euro triggered the initial wave of dollar selling, with the single currency breaking through key resistance at USD1.1535 to move through USD1.16 and beyond in overnight trade," said Geraldine Concagh, senior economist at AIB Treasury. Earlier the dollar temporarily spiked against the yen - on rumoured intervention by the Bank of Japan - but the gains were short lived. With a single round of intervention unable to hold the yen back, the dollar quickly fell back to a three-year low.
The market is continuing to apply pressure on the dollar, ignoring warnings from Japan's finance minister Sadakazu Tanigaki that the yen's recent moves were too sudden and the authorities would take appropriate measures. At 0900, the dollar was worth 110.40 yen, down from its post-intervention high of 112 yen.// www.fxcentre.com