The dollar tumbled to its lowest level against the euro in 12 months earlier this evening as the US currency came under pressure ahead of a decision on US interest rates by the Federal Reserve.
The euro hit a high of $1.2815 in afternoon European trading, its highest level since May 12 2005. The euro later fell back to $12770, however, after the Fed indicated that further US rates rises might be needed.
The policy-making body of the Federal Reserve, the Federal Open Market Committee (FOMC), also raised rates to 5% as expected.
