Spine put back into the dollar

BETTER than expected first quarter growth figures in the US of 1.9%, against earlier estimates of 1.6%, put some spine back into the dollar yesterday.

By the end of the day it was worth $1.1805 against the euro, back fractionally from the previous highs of over $1.19.

All eyes are fixed on the ECB, now expected to cut interest rates by 0.5% next Thursday. That expectation rose sharply yesterday following comments from ECB economist Otmar Issing, one of the staunchest proponents of curbing inflation in the bank.