Euro finishes up over a cent vs. US Dollar

The euro strengthened by 1.05 cents (0.76%) against the US dollar yesterday to close the day at $1.3939.

• In early trading yesterday the euro edged up against the dollar as the single currency tracked a recovery in crude oil prices. However, an initial 0.5% dip in European equities capped its gains.
  
• The dollar again slid on renewed speculation its position as the world’s premier reserve currency could be under threat. A summit involving the leaders of the emerging BRIC nations has forced the issue onto the currency agenda, particularly after Russia last week said it would cut the amount of US Treasuries it held.
  
• Disappointing US consumer price index figures, which showed a rise of just 0.1% in May, kept up the downward pressure on the greenback, as it made a US interest rate rise even more unlikely this year.
  
• So far today the euro has edged slightly higher against the dollar, while investors continue to pore over President Obama’s new regulation plans detailed last night.
  
• There are no major announcements due in the eurozone today, whilst in the US Unemployment Claims are out at 13.30 BST.