Global policy a factor in fate of dollar

GLOBAL currency policy is becoming a bigger factor in the fate of the US dollar. After losing some ground, the euro was holding steady yesterday at $1.16 despite better than expected data out of the US.

While down from its high last week of $1.18, more analysts said the failure of the euro to buckle on the back of increasing evidence of a US upturn, sends a strong signal to the market.

The fact that US President George W Bush is in Japan trying to persuade the Japanese to allow the yen rise against the dollar is further testament that the US administration is committed to a weaker dollar.