The dollar went 1 per cent higher against the euro today as the market jockeyed for position ahead of US manufacturing data that is expected to show recovery still outpacing improvement in the euro zone.
US players are back in the market later after yesterday's holiday and their return was expected to mark the end of the summer holiday season, with all eyes on the pace of US recovery and the outlook for stock markets around the world.
Regional reports have given upbeat readings on US factory output and analysts expect the nationwide Institute of Supply Management (ISM) survey, due at 3 P.M. Irish time, to confirm this with a rise to 53.8 in August forecast, up from July's 51.8.
By 11 a.m. the dollar was holding close to the day's high of $1.0843 per euro, less than a cent below a four-month peak set last week. It had also gained 1 per cent to touch 1.4158 Swiss francs and was up against the British pound and Australian dollar.