The euro gained slightly against the dollar today as negative sentiment continued to undermine the US currency.
Dealers said a number of factors were conspiring against the dollar at the moment, including the issue of central bank's diversifying their reserves into other currencies, speculation over whether the US will end its 'strong dollar' policy and geopolitical concerns.
They added that the dollar remained particularly vulnerable amid talk of a possible revaluation of the yuan following a weekend call by G7 nations for China to allow its currency to appreciate.
In late European trading, the euro stood at $1.2455, as investors focused on positive news in Europe, notably confidence data in Germany on Tuesday, and expectations that the European Central Bank will raise interest rates in the coming months. The single currency had earlier hit a seven-month high of $1.2460.
