4 July 2005, 17:17  The dollar continued its relentless rise against major currencies

The dollar continued its relentless rise against major currencies, with the euro dipping below the 1.90 usd level for the first time since May 2004. The US currency has been boosted by confirmation last week that interest rate hikes are set to continue after Thursday's upbeat statement from the US Federal Reserve, followed by stronger-than-expected consumer confidence and ISM manufacturing data on Friday. The dollar is also being helped by today's thin market due to US markets being closed for the Independence Day holiday, with speculators able to take advantage of small volumes to push the currency higher. "In the absence of fresh fundamental developments, euro/dollar is in danger of slipping further," said Daniel Katzive at UBS. The dollar pushed higher across the board, rising above 1.3 against the Swiss franc with sterling dropping below 1.8 usd, both for the first time since May last year. The US currency also touched nine-month highs against the yen. Focus this week is likely to centre on Friday's key US jobs report for June. If the data confirm the positive outlook for the US economy, the dollar could be set for further gains. Elsewhere, the pound remained on the backfoot after steep falls at the end of last week in the wake of a series of dismal UK economic data, which suggested that interest rates are likely to be moving downwards sooner rather than later.

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