Dollar hits $1.1869 against euro

THE dollar hit a four-month high against the euro yesterday as positive economic data from America fuelled renewed investor confidence in the greenback — for the time being.

Traders sold euros and bought dollars, driving the dollar as high as $1.1869 against the euro, the highest level recorded since November and over 7% higher than the $1.28 floor reached by the dollar in February. It later retreated to $1.1920.

But Ulster Bank economist Niall Dunne warned exporters that the dollar’s recovery may be short-lived. He said America’s continuing budget deficit was a problem that refused to go away and would remain an issue for the market.