US$ falls again as rate rise expectations collapse

London

THE US dollar was back on the defensive in early trade in Europe after a collapse in expectations of a further rise in US interest rates this year drove its biggest daily fall in over two months on Wednesday.

Against a basket of currencies, the greenback fell another 0.5 per cent to 96.796, its lowest since early November. The euro hit a 31/2 month high of US$1.1161, extending its gains from an explosive sell-off a day earlier.