//
Safe-haven buying of the dollar has been fuelled by news that the US government is to pour cash into the American International Group (AIG), reports Reuters.
Meanwhile, the single European currency came under pressure after a summit of EU leaders refused to agree a large-scale bailout of ailing member states.
Geoffrey Yu, a currency strategist at UBS, said the dollar was benefitting from the news about AIG, HSBC and concerns about eastern European economies.
"The market is still very negative on the euro and signs of division in Europe and suggestions that Germany is turning its back on eastern Europe are not helping," he commented.
It has also been reported that a record amount of foreign currency has been traded in London markets over recent months, according to efinancialnews.com.
