August 15, 2007	Wednesday	Sha’aban 1, 1428

LONDON, Aug 14: The European single currency fell below $1.36 on Tuesday as the greenback was boosted by its status as a safe haven in times of financial instability, dealers said.

The euro was also held back by weaker-than-expected eurozone growth which diluted prospects of another interest rate hike from the European Central Bank from the current level of 4 per cent.

Elsewhere, the British pound sank beneath $2, as sliding inflation also dampened expectations that the Bank of England would raise borrowing costs in the coming months from 5.75 per cent.

In early European trade, the euro fell to $1.3563 -- the lowest point since July 2 and the first time it had fallen under $1.36 since July 10.The euro later stood at $1.3583, which compared with 1.3608 late in New York on Monday.

“Uncertainty, market volatility and hence risk aversion remains evident in the financial markets,” said Derek Halpenny, senior currency economist at The Bank of Tokyo-Mitsubishi in London.

He added: “These signs are becoming less evident suggesting that the action from global central banks in recent days to supply the necessary liquidity has helped stabilise confidence.—AFP