The euro fell back below parity against the dollar in late trade yesterday, weakened by a surprise upward revision to the University of Michigan index of consumer sentiment and ensuing rises on US equities, according to dealers.

The euro slipped to $0.9873 from $1.0048 late on Thursday in New York.

The dollar also advanced against the Japanese yen, rising to 118.24 yen from 116.40 on Thursday.

"The dollar is being buoyed by a rally in equity markets," said Mr Will Rugg, senior currency strategist at Standard & Poor's. "Equities were already up and the Michigan result gave them an extra kick," he added. The dollar's rise was broad-based, with rises against the Swiss franc and sterling.