Dollar recovers ground against Euro
After a nervous week for the European Central Bank, which saw record lows against the US Dollar, the Euro has recovered some strength against the dollar, closing at $1.333, compared to the high of $1.346 on Tuesday.
There were fears that the strong Euro could have a serious effect on European economies in 2005. Whilst a low dollar will not please European manufacturing, US actions to try and lift the exchange rate were viewed as positive.
The dollar’s decline has also been accompanied by a 16 year rise in the price of gold and European bonds.
