A brief claw back by the dollar failed to stop the euro's onward march in late trading this afternoon. Spurred on by a strong showing by the Dow Jones, which flirted with the 10,000 mark, the dollar managed to pick itself up of the floor for a brief period this afternoon. However, as trade progressed the euro strengthened, and by 1700, the single currency was up at USD1.2225. Against sterling, which hit an 11-year high against the dollar today, the euro eased to STG0.7012.
Concerns over the ballooning US current account deficit and suggestions from the Bank of International Settlements that Opec members and China are reducing their purchases of dollar assets continue to weigh on sentiment. Attention is turning toward this evening's Federal Open Market Committee meeting, prompting some dollar buying, analysts said. However, they warned that the dollar remains in a dangerous position, especially if the Fed decides to keep its pre-commitment to accommodative policy. //www.fxcentre.com