Dollar hits six-month low

The dollar hit a six-month low against the euro on Friday after a Federal Reserve official said U.S. growth has been generally disappointing, which strengthened the case for more quantitative easing.

More action by the Fed to boost growth will likely be warranted unless the outlook improves, William Dudley, president of the New York Fed, said on Friday.

Euro rallies on the Pound

The euro has rallied against the pound during early morning forex trading today (October 5th) as traders awaited the release of UK service sector data.

According to Reuters, the European currency was up 0.5 per cent against its British counterpart by 08:50 BST, putting it on 86.84p.

The climb cancelled out falls that occurred yesterday, when investors moved away from long euro positions after seeing the currency surge against sterling and the dollar.

On Monday, the euro reached a four-month high against the pound as worries mounted over the pace of the economic recovery in the UK.