The dollar has steadied today following two days of sliding fortune, although speculation is growing that the rate rises could be coming to an end.

This morning the dollar stood at 1.7241 against the pound and 1.1798 to the euro.

Following indications earlier in the week that the Federal Reserve is set to end its interest rate rises, the dollar had fallen away from its two year high against the yen.

Although another raise looks likely in December, matching the euro rate's expected rise of 0.25 per cent, many experts believe there is trouble ahead.

While the US base rate would remain two per cent ahead of the European rates at 4.25 per cent, some analysts believe the end of the 'greenback's' positive fortunes is nearing.

David Bloom of HSBC told the Daily Telegraph: "At some point, the market is going to start looking once again at the massive imbalances in the US economy, and when that kind of thinking takes hold, the dollar is going to fall off a cliff."

Mr Bloom expects the dollar could plummet by the first quarter next year and HSBC predicts the dollar could be down to €1.35 within a year.