Record gain for dollar on euro

THE US dollar has posted its biggest weekly gain against the euro following indications that economic growth in Europe's leading market is stalling.

The euro fell to a four-month low of just $1.09 yesterday, a 9% drop since it reached $1.1933 earlier this year.

Figures released yesterday show the major economies of the eurozone are sliding deeper into recession, with French GDP declining by 0.3% in the second quarter compared with growth of the same figure in Britain, which is outside the eurozone. Four other European countries Germany, Switzerland, the Netherlands and Italy are now in recession, whereas the US economy is showing signs of a recovery.