EUROPEAN UNION

The dollar held near a record low versus the euro on Thursday after weak U.S. data fuelled recession fears and Federal Reserve Chairman Ben Bernanke signaled a readiness to cut interest rates again.

The European Commission opened in-depth investigations on Wednesday to determine if billions of euros in German government assistance to two banks, hit by the U.S. sub-prime market crisis, amounted to illegal state aid.

The dollar fell on Tuesday, approaching a record low versus the euro after economic data painted the U.S. economy in a negative light.

The dollar and euro both gained against a weaker yen on Monday as positive news for the U.S. financial sector boosted appetite for stocks and other riskier trades and helped underpin high-yielding currencies like the New Zealand dollar.

EU and U.S. senior officials said on Friday they would crack down on counterfeiting of computer components after they seized over 360,000 fake items in just two weeks in a joint operation at the end of last year.

The dollar fell against the euro on Friday after a gauge of consumer sentiment plunged to its lowest level since 1992, adding to fears that the U.S. economy may be slouching toward recession.

The dollar rose to its highest level against the yen on Wednesday after a government report indicated that retail sales in the U.S. rose more than expected, easing concerns about the likelihood of a U.S. recession.

The yen rose against the dollar and euro on Monday as stocks fell amid inflation concerns and continuing problems in financial markets.

The dollar was on its way to its largest weekly gain versus the euro since June 2006 on Friday amid speculation that the European Central Bank will lower interest rates to boost a slowing economy.

Gold futures edged higher on Thursday, trading $912 an ounce, on speculation that central banks will mimic the U.S. by cut borrowing rates which boosted the appeal of the precious metal.

Aviva Plc has reported growth of 25 per cent in sales for the whole year 2007, worth £38,583 million, thanks to strong growth in North America and Asia. The group has also said it is positive of sales and profit growth in 2008.

The euro declined to two-week lows versus the dollar on Thursday after European Central Bank President Jean-Claude Trichet said euro zone growth risks are to the downside, signaling lower interest rates this year.

The dollar fell against the yen on Thursday after government reports showed softness in employment and personal spending ahead of a jobs report tomorrow.

The Euro rose on Wednesday against the dollar, reaching its highest level in eight days after a top official at Europe's Central Bank played down the possibility that the bank will lower interest rates.

The head of Europe's Central Bank spoke on Wednesday about crisis management in light of the ongoing financial markets and economic turmoil, remarking on areas for improvement to avoid such major turbulent episodes.

The dollar on Tuesday, reaching its lowest level against the yen in two years after a report about slow retail sales triggered concerns that the U.S. economy will go into recession.

The dollar extended its declines against the euro and yen on Tuesday after data showed U.S. retail sales for December were below market expectations.

Inflation causes ECB to move interest rates if necessary The European Central Bank is worried about inflation in the eurozone and ready 'to do whatever necessary' to avoid second-round effects, said ECB on Wednesday.

The Yen fell on Tuesday after the European Central Bank injected more than $500 billion to the banking system, boosting the carry trade.

The European Central Bank's policymakers will act in a firm and timely manner to ensure that knock-on effects from higher oil prices do not appear, the ECB said in the editorial of its December bulletin.

The euro rose against the dollar and yen on Monday, as investors await that the Federal Reserve will lower interest rates Tuesday to boost the economy.