Dollar breaks back above parity

THE dollar surged back through the one-for-one level with the euro breached earlier this month. Traders reported a decline in sentiment for the eurozone economy after Monday's collapse in share prices.

Others said institutional investors had been forced to buy dollars to repay losses taken on their stock market portfolios. The dollar rose to $0.9910 against the euro, compared with last night's US close of $1.0079.

Against the pound it stood at $ 1.5646 - 2.5 cents stronger than a week ago. Analysts noted the dollar was moving with increasing independence from US equities as some institutions considered the greenback had fallen too far. 'The dominant trend in the currency market now is a correction of too much dollar weakness,' said one trader.

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