The euro has continued to rebound strongly as the markets turn negative on the dollar. However, it is weakening once again against sterling.

The new currency closed at three-month highs at $1.0714 in late trading from $1.0635 a day earlier. However, it fell against sterling which took off once again, closing at 66.40p from 66.79p. As a result the pound closed at 84.31p.

Growing signs of economic recovery in Europe and Japan as well as mounting inflationary pressures in the US mean the dollar is likely to come under increasing pressure. See Page 2