The euro skirted parity with the dollar again yesterday, sliding lower before stabilising on the eve of a key German report on business conditions in the powerhouse economy of the EU. The euro closed at $1.0034 compared to $1.0044 on Tuesday.

Dealers said that although sentiment towards the European currency remained negative, with US economic data released yesterday having failed to provide significant fresh leads, the market was unwilling to sustain a fresh attack on parity with the dollar.