April 14, 2007	Saturday	Rabi-ul-Awwal 25, 1428

LONDON, April 13: The euro rose to $1.3534 on Friday in early European trading, reaching the highest level since January 3, 2005 on expectations of rising eurozone interest rates, dealers said.

The single currency later stood at $1.3523, compared with $1.3480 late on Thursday.

The euro had breached $1.35 on Thursday after the ECB signalled that it was ready to raise eurozone borrowing costs again in June.

ECB President Jean-Claude Trichet sent a clear signal that the bank was set to raise its key interest rates -- already at a five-and-a-half-year high -- still further in June, after holding rates at 3.75 per cent on Thursday.

“The dollar has been depressed against the euro by the comments of President Trichet on Thursday following the monetary policy meeting of the European Central Bank,” said Paul Chertkow, head of global currency research at The Bank of Tokyo-Mitsubishi in London. “Characterising monetary policy as still accommodative, he (Trichet) underpinned the expectation of another 0.25 point increase in the refinancing rate in the eurozone before mid-year.” —AFP