Return to stronger euro on the cards

EURO weakness for the third day in a row does not necessarily mean the end of the dollar slide, analysts warned yesterday.

Since last Monday’s high of $1.2898 the euro tacked back to $1.2411 in late trading yesterday.

The dollar rise followed stronger-than-expected capital inflows to the US in November when overseas investors ploughed $87.6 million into US equities and securities. That compared with just $20m in October and the net effect was to push the euro down from an opening $1.26 to its lowest level for some time.