Strong Euro not a concern

THE dollar fell to a three-month low against the euro yesterday after Germany’s deputy finance minister said a stronger European currency isn’t a concern, boosting speculation policy makers will let the dollar drop in coming months.

“The 12 nations sharing the euro can tolerate a rise in the currency as long as it isn’t too rapid,” said Germany’s deputy finance minister, Mr Karl Diller yesterday. The remarks follow similar comments from European finance ministers, and helped push the dollar down for a third day.

“We’re only about halfway through this downtrend in the dollar,” said Mr Steven Barrow, a currency strategist at Bear Stearns in London.