An easing of risk appetite weakened the euro yesterday, but it has rallied back over $1.46 so far today

The single currency hit a two-week low against the greenback yesterday as a rise in risk aversion strengthened demand for the haven currency.

• The dollar rose for a second day as evidence that economies have yet to shake off the worst effects of the global recession spurred demand for the safety of the U.S. currency.
  
• Russia’s central bank cut its main interest rate, signaling that things are not as positive as they appeared previously, and spurring demand for the dollar.
  
• The greenback also found support following a disappointing US consumer confidence survey, which cautioned investors in their risk appetite.
  
• Comments from ECB President also weighed on the euro, with Trichet saying that he was in favour of the argument for a strong US dollar in the foreign exchange markets.
  
• The remarks were reflective of a concern regarding the strength of the single currency on the eurozone economic recovery.
  
• This morning, the single currency has stretched back over 1.46 as risk sentiment returns to the market, diminishing demand for the dollar.