August 14, 2007	Tuesday	Rajab 29, 1428

LONDON, Aug 13: The dollar climbed against the euro on Monday as the world's major central banks continued their efforts to restore some calm to volatile financial markets, analysts said.

In late European trade, the euro fell to $1.3622, its lowest level in a month, from $1.3692 late in New York on Friday.

The dollar gained to 118.47 yen, from 118.37 yen in New York late on Friday.

The greenback has found support in recent days from its status as a safe haven investment in times of global financial turmoil, dealers said.

The European Central Bank on Monday pumped another 47.66 billion euros ($65.06 billion) into the money market to address liquidity shortages amid growing fears about the US home loan sector.

The bank said earlier that the eurozone banking market was returning to normal after it injected a record 155.85 billion euros into the market over two days last week.

Earlier Monday, the Bank of Japan announced another cash injection of 600 billion yen ($5 billion) and the US Federal Reserve added another $2 billion.

Analyst Neil Mellor at the Bank of New York Mellon predicted more volatility in financial markets.

“Given that market liquidity remains partly dependent on central bank activity and that it will be some time before we can declare a cessation in unfavourable newsflow, a market on tenterhooks gives only limited grounds for optimism that any stability is here to stay,” he said.

The current turmoil in financial markets stems from concerns that banks exposed to losses in the US sub-prime housing market might have insufficient cash to continue lending normally, causing a credit crunch.

“Any time there is any improvement in sentiment, it only takes more bad news from a hedge fund or bank to reverse it again,” warned analyst Mitul Kotecha of Calyon.—AFP