Euro drops against dollar

The euro dropped sharply last night on Wall St resulting in dollar buying.

European Central Bank (ECB) president Wim Duisenberg indicated that there will be further interest rate cuts, and this also weakened the single currency.

Analysts estimate that if European rates drop below the current 2% level it may end the euro's rally.

By 9am this morning the euro was up to $1.1703 and to stg£70.44p - almost 1p below Monday's high of stg£70.40p.