Euro nears recent three-year high on dollar weakness

London

THE euro rose a third of a per cent on Monday on expectations that the European Central Bank will maintain its current monetary policy at a meeting this week and not signal a dovish tilt.

Dollar weakness, exacerbated by a US government shutdown and strengthening economic growth in Europe, also encouraged large investors to boost their expectations on the euro with UBS Wealth Management upgrading its short-term forecast for the single currency.

"If it was not for the interest rate differentials, the euro would be much higher against the dollar as the underlying fundamentals such as current account balances have improved significantly in recent months," said Thomas Flury, head of currency strategy at …