Euro finishes up against US Dollar

The euro strengthened by 0.32 cents (0.23%) against the US dollar yesterday to close the day at $1.3834.

• In early trading yesterday, the euro strengthened against the dollar after a surprising rise in the German ZEW Economic Sentiment bolstered hopes for the eurozone’s chances of economic recovery. This month’s reading of 44.8 was well ahead of the 35.0 expected.
  
• The downward pressure on the dollar was further increased yesterday after the news that Russia may be looking to diversify its reserve currency portfolio away from the greenback prompted traders to sell the US currency.
  
• In trading so far today the euro has resumed its rise against the dollar, as the first summit of the fast-growing “BRIC” nations continues. The meeting has once again thrust the dollar’s status as the world’s premier reserve currency onto the agenda.
  
• There are no major announcements due in the eurozone today, whilst in the US Core CPI (MoM) is out at 13.30 BST and Fed Chairman Ben Bernanke is to speak at 17.00 BST.