Central bankers from the world's leading economies have expressed concern that the dollar's strength is damaging the economies of the US and Europe.

After the meeting of the Group of 10 central bankers in Basle, Switzerland, Mr Edward George, governor of the Bank of England and chairman of the G10, said the strong dollar was having "perverse" effects on both sides of the Atlantic.

His comments, reflecting views expressed by bankers at the meeting which included representatives of the US Federal Reserve and the European Central Bank, were an unusually frank indication that the leading economies would like to see the dollar fall.

The strength of the dollar against the euro has hurt US competitiveness, damaging the manufacturing industry, and hit consumer spending in the euro zone by raising import prices and limiting the ECB's ability to cut interest rates.