LONDON, Aug 22: The euro firmed on Wednesday after the European Central Bank gave a clear hint that it is still on course to raise borrowing costs next month despite the recent turmoil in the financial markets.

In late European trading the European single currency was changing hands at $1.3537, its highest level for more than a week, against 1.3463 in New York late on Tuesday.

The dollar rose to 114.99 yen against 114.41 late on Tuesday.

In a statement, the ECB confirmed earlier on Wednesday that its monetary policy stance has not changed from earlier in the month when the bank’s chief Jean-Claude Trichet reinforced expectations of another quarter point increase in the key interest refinancing rate to 4.25pc.

The euro was changing hands at $1.3537, against $1.3463 late on Tuesday, 155.66 yen (154.07), 0.6800 pounds (0.6791) and 1.6330 Swiss francs (1.6240).—AFP