FX round-up: Euro rises above $1.23

Date: Wednesday 16 Jun 2010

The dollar fell as the euro sprung past $1.2338 on Tuesday as improved sentiment about the global economic recovery fuelled appetite for riskier investments.

A stellar performance among US equities, upbeat economic data and easing fears about the euro zone underscored gains for the euro. Solid demand at European debt auctions also sparked interest in the euro.

The dollar index, which measures the US currency against a basket of six other currencies, fell to 85.985 from 66.513 the previous session.

The greenback was down against the yen as investors mulled new measures from the Bank of Japan to boost the country's economic recovery. The BoJ outlined a 3trn yen credit programme for companies.

Meanwhile sterling slipped back against the euro and the dollar as UK inflation figures came in lower than expected.

The Office of National Statistics said the annual rate of consumer price inflation fell to 3.4% in May from 3.7% in April, lower than forecasts of 3.5%.

Sterling fell 0.2% at $1.4705.