The dollar rose against the euro and the yen this afternoon after the US Federal Reserve Chairman Mr Alan Greenspan said the US central bank will do what is required to keep inflation in check, analysts said.
US Federal Reserve Chairman Mr Alan Greenspan
By mid morning in New York, the euro was off 0.4 per cent against the dollar, trading at $1.2258 after Greenspan made his remarks via satellite to a London banking conference.
Earlier in the global day the euro had touched a two-month high at $1.2351.
European Central Bank President Mr Jean-Claude Trichet told the London banking conference the ECB was still working on the assumption that the euro zone economy would gradually recover, although high oil prices were a threat to growth.