Dollar declines push euro upwards

MARKET NEWS

The euro may have made inroads against the dollar but, says Matthew Clements, economist at Prebon Yamane in London, the gains came on the back of US weakness

A positive month for the euro in July led to the currency reaching a two-month high last week to above $0.88. However, the rally came on the back of four straight days of dollar declines across the majors rather than from any euro-positive factors from within the eurozone.

Unusually, comments from Fed chairman Alan Greenspan in his semi-