LONDON, Oct 17: The dollar pushed the euro down to a one-month low on Thursday as better-than-expected results from several US companies raised expectations that Wall Street would be able to continue its recent rebound.

The single European currency fell to $0.9766 from 0.9808 late on Wednesday in New York.

The dollar also traded at 124.23 yen against 124.49 on Wednesday.

Analysts said the US unit was boosted by positive earnings news from US companies such as computer giant International Business Machines (IBM) and Advanced Micro Devices (AMD) after the closing of US trading Wednesday.

The 3.0-per cent target was agreed under the European Union’s 1997 Stability and Growth Pact which Berlin was instrumental in setting up, demanding at the time strict limits on public finances in order to underpin the success of the euro.

The inaction of the ECB (European Central Bank) is being compounded by the embarrassing admission by Germany, the architects of the stability pact, that it will fail to keep its budget deficit below 3.0 per cent of GDP, said Bank of Tokyo-Mitsubishi economist Derek Halpenny.

I know very well that the stability pact is stupid, just like all decisions that are rigid, Prodi told the newspaper in its edition dated Friday.

If you want to change them, you need unanimity and that doesn’t work. It’s not enough to have intelligence — we have that. You also have to be able to decide.

Meanwhile the ECB said in its October monthly report that euro-zone growth was only likely to return to its trend potential of 2.0-2.5 per cent in 2003, rather than this year as previously hoped, and then only if domestic demand picks up and the global economy recovers.

The euro was changing hands at $0.9766 against 0.9808 late on Wednesday in New York, 121.36 yen (122.15), 0.6296 pounds (0.6312) and 1.4672 Swiss francs (1.4663).

The dollar was being quoted at 124.23 yen (124.49) and 1.5014 Swiss francs (1.4944).

The pound was at 1.5518 dollars (1.5535), 192.78 yen (193.44) and 2.3299 Swiss francs (2.3221).

On the London Bullion Market, the price of an ounce of gold stood at $314.20 against 314.05 late on Wednesday.—AFP