The US Federal Reserve has reiterated its commitment to tackling inflation, with fresh comments again emphasising the likelihood of interest rate rises.

This morning the dollar stood at 1.7113 to the pound and 1.1685 against the euro.

Analysts were expecting the dollar's upward curve to continue after comments made by St Louis Federal Bank president, William Poole.

Mr Poole said that "underlying determinants of inflation" meant that the Fed would proceed with caution.

The comments from Mr Poole echo the consistent line taken by the Fed that it will be strict on inflation and will maintain its policy of incremental rate rises as appropriate.

Eyes are now set to turn to the European Central Bank for indications on the possible direction of the euro, with president Jean-Claude Trichet addressing the European Parliament on Monday.

Analysts are awaiting any further clues on changes made by the bank to the base rate, which is expected to be hiked within the coming months.