April 06, 2007	Friday	Rabi-ul-Awwal 17, 1428

LONDON, April 5: The European single currency surged past $1.34 on Thursday to strike its highest level in two years, while the pound fell on weak British manufacturing output data.

The euro stood at $1.3428 in late European trade, after rising earlier in the day to $1.3441, its highest level since March 14, 2005.

Late on Wednesday in New York it had been at $1.3367.

The dollar fell to 118.67 yen in European trade, compared with 118.70 late on Wednesday.

The US currency had been hit overnight by soft economic data, while the euro has been buoyed in recent weeks by positive economic news and favourable interest rate differentials, analysts said.

“It’s a move that’s been building up for some time,” said Ian Stannard, currency strategist at BNP Paribas.

He said that there had been “no new news” which triggered the move higher, other than the contrasting economic outlooks in the eurozone and the United States.

Stannard added that “the data from Europe was continuing to come on the strong side” in contrast with the “mixed” data flow from the United States.

Foreign exchange market participants meanwhile are awaiting publication of key US jobs data on Friday after disappointing service sector figures in the world’s largest economy, dealers said.

On the London Bullion Market, the price of gold advanced to $673.50 per ounce, from $672.25 late on Wednesday.—AFP