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Euro hits five week high

THE EURO hit a five week high against the dollar today on strong economic data and signs of low interest rates in the US for the next few years.

The euro gained to a session high of $1.3176 after the US Federal Reserve’s decision not to raise interest rates until late 2014 against a backdrop of a 2pc inflation rate.

Fed chairman Ben Bernanke also said more monetary easing will be considered through bond purchases.

The euro was also boosted by expectations that private investors exposed to Greek debt will be willing to lower their final offer of a 4pc interest rates in new bonds.

The deal is necessary to avert a messy Greek default and the release of a further €130bn in bailout loans.