Dollar sees more losses

The dollar has once again fallen, losing more than 1% against the euro, the Swiss franc and the Canadian dollar.

The greenback's losses followed a dip in US stocks which was reportedly compounded by investment funds joining in on the selling amid a data vacuum.

"There is no data... that triggered this dollar sell-off. Lower stock markets started it and as the momentum built up, model funds were generally pushed back into short-dollar positions," Rebecca Patterson, at J.P. Morgan Chase in New York told Reuters news agency.

By 1807 BST the euro reached $1.1819 - a rise of 1.25% since Tuesday.

Meanwhile sterling hit a five-year high of $1.6942, up 1.2% after minutes from the Bank of England's October meeting showed policymakers came within one vote of making a rate hike.

Helping the deficit

The dollar fell 1.33% against the Swiss franc to trade at 1.3122 francs.

Rising commodity prices, part of the global economic recovery trend, helped push the Australian dollar to a six-year high.

The Canadian dollar hit a 10-year high after reports of strong retail sales and a forecast by the Bank of Canada which said that growth should pick up later this year while inflation looks set to decline in 2004.

The US, although paying lip service to a strong dollar, is believed to be increasingly inclined to let it slide in order to help mend its widening current-account deficit.