The Greenback Slips after Seven-Month High against Euro

The dollar fell back as profit taking set in after the US currency hit a seven-month high against the euro. The single European currency bought 1.2583 dollars earlier this week from 1.2558 late last week in New York.

"People have been buying dollars so much recently that we´ve just had a bit of a technical correction," said Gary Noone at Informa Global Markets, in an effort to explain the euro´s rise.

In terms of news, European politics took center stage, with opinion polls suggesting that both France and the Netherlands could reject the proposed EU constitution in upcoming referendums.

The euro will most likely survive any ‘No´ vote, but it could probably raise some question marks about the smoothness with which countries can join the EU in the future.